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Bathurst Resources [NZX: BRL] says it needs an extra day to complete a discounted share placement raising funds to develop its controversial Escarpment open-cut coal mine on the Denniston Plateau near Westport.
The Wellington-based mining company would raise as much as $6.87 million at its current stock price, based on its intention to make a placement amounting to 10 percent to 12 percent of its capital at a discount of 15 percent to 20 percent. The shares were at 8.2 cents before being halted yesterday and have dropped 59 percent in the past 12 months.
Bathurst "advises that the process of receiving and assessing applications from qualified investors is expected to be completed during the course of today with an announcement of the result of the placement now being expected to be made by 9:30am on Wednesday," it said in a statement.
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.