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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news