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Bathurst Resources raises A$16.4M to progress New Zealand coal operations

Published: 16:00 03 Sep 2013 AEST

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Bathurst Resources (ASX: BRL NZE: BRL) has raised NZ$18.9 million (A$16.4 million) to fund its existing operations and the resource consenting process for the Escarpment coal project in New Zealand.

The successfully capital raising highlights the confidence investors have in the company’s plans to develop its coal export operations in New Zealand.

The funds were raised through a placement of 104.9 million shares priced at NZ$0.18 each to institutional and other sophisticated and professional investors in New Zealand, Australia and other jurisdictions.

The company is also considering a Share Purchase Plan capped at 5% of the company’s shares on issue, or about 35 million shares, before the Placement to existing shareholders. This could raise up to an additional $6.3 million.

Bathurst had last month identified its recently acquired Canterbury Coal mine in New Zealand as holding 19 megajoule thermal coal that is low in sulphur and ash.

Canterbury has an Indicated Resource of 0.9 million tonnes of coal and 2.4 million tonnes of Inferred Resources.

It had also received an Environment Court advising that “consent is indicated for the Escarpment Mine Project, subject to final minor drafting on conditions of consent.”

Once final consent is granted, Bathurst can move into the first stages of operations.

Bathurst is focused on the development of the Buller Coal Project near Westport which is targeting the production of up to 4 million tonnes a year of high quality export coking coal for the steel mills of India and Asia.

The key first stage of the export coal project at South Buller is Escarpment - which is targeting an initial output of 500,000 tonnes per annum of coal for off shore markets. This will increase to around 1 million tonnes per annum over a 6 year mine life.

 

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