Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Bathurst Resources raising up to $6.87mln in placement

Bathurst Resources raising up to $6.87mln in placement at 15-20 percent discount

April 14 (BusinessDesk) - Bathurst Resources, which has cut jobs and delayed the start to its controversial Escarpment open-cut mine on the Denniston Plateau pending a recovery in coal prices,
may raise up to $6.87 million in a discounted share placement.

The mining company had its stock halted from trading ion the NZX and ASX for the capital raising. A competitive bookbuild is underway as part of a placement that would amount to 10 percent to 12 percent of Bathurst’s capital at a discount of 15 percent to 20 percent.

The detail was included in Bathurst’s statement to the ASX, but not in its statement to the NZX, where it notified only that the shares were being placed in a trading halt pending announcements about a capital-raising, due tomorrow morning.

The capital-raising would raise $6.87 million assuming it sold 12 percent of its capital at a 15 percent discount. The shares last traded at 8.2 cents, valuing the company at $67.4 million, having shed 59 percent in the past 12 months.

Bathurst said it is liaising with an overseas intermediary on behalf of some potential participants in the placement and doesn’t yet have full details of their obligations. The placement is conditional on achieving a minimum bookbuild, it said. The company didn’t identify the parties or give details of the bookbuild.

According to notes for a briefing last month, Bathurst’s biggest shareholder was Coupland Cardiff with 13.3 percent. Other institutions held 28 percent and retail investors accounted for 46.8 percent of the stock.

A key focus was the establishment of the Escarpment mine in preparation to enter export markets once markets recovered, it said last month. Capital requirements for stage 2 production included $2 million of working capital, $2 million for infrastructure at the site and about $1 million for new washing/separator technology.

In February, the company said it would cut 29 jobs as it hunkered down to ride out the lowest world prices for coking coal in the last nine years.

Bathurst won resource consents for Escarpment near Westport last October, more than two years after initial consents were appealed by environmental groups. In the meantime, prices slumped to the extent that there would be no margin in extracting coal from the new mine.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: NZ Wool Exports Jump To The Highest In More Than A Decade

New Zealand wool exports jumped to their highest level in more than a decade in June, aided by a lower currency and strong demand from China, the nation’s largest market. More>>

ALSO:

Surreal Estate: Home Values Rise At Fastest Rate In Seven Years

The latest monthly QV House Price Index shows that nationwide residential property values for July have increased 10.1% over the past year which is the fastest annual rate since 2007... The Auckland market has increased 18.8% year on year. More>>

ALSO:

New Employment Laws: Talley’s AFFCO Workers To Strike

The decision comes after the Talley’s owned company walked away from mediation last week and applied to end bargaining under the government’s new employment laws - the first such application since the law came into effect. More>>

ALSO:

Private Action: Employer Pleads Guilty Over Forestry Death

The CTU has always known that the death of forestry worker Charles Finlay was due to the poor health and safety practices of his employer... "The CTU, with the support of Charles’s family, needed to take this ground breaking private prosecution." More>>

ICT Innovation: Six NZ Finalists In World Summit Awards

The awards are a global showcase of 40 projects, across eight categories, with a special emphasis on those which show the benefits of information and communication technology for the development of communities. New Zealand has finalists in six of the eight categories. More>>

ALSO:

Final Frontier: Rocket Lab And NASA Sign Commercial Space Launch Agreement

Rocket Lab has signed a Commercial Space Launch Act Agreement with the National Aeronautics and Space Administration (NASA). The agreement enables Rocket Lab to use NASA resources - including personnel, facilities and equipment - for launch and reentry efforts. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news