Bathurst trading halt extended to Wednesday morning for capital raising
Bathurst Resources [NZX: BRL] had its trading halt extended for 24 hours until the start of trading on the NZX on Wednesday to allow it to complete its $20 million capital raising.
The company has net cash on hand of $8 million and says it will need $13.3 million in year one of a plan to bring the export-focused coking coal operation at its Escarpment development on the Denniston Plateau into production, along with $6.6 million on domestic operations, which sell thermal coal to local consumers.
That would take Bathurst to 640,000 tonnes of coal production annually, while it would need to spend a further $70.5 million on its Buller coking coal plans in the second and third years, to take the company to one million tonnes of coal production annually.
The time extension will "allow the lead managers of the capital raising to finalise allocations," the company said.
Bathurst shares last traded at 20 cents apiece, having listed on the NZX in November 2010 at 74 cents and rising in May 2011 as high as $1.70.
The bookbuild cannot raise more than 15 percent of the market capitalisation of the company, which documents issued to the NZX put at $139.8 million, making the upper limit for the capital-raising at $20.97 million.
Among investments required on the Denniston plateau is improved roading and construction of an aerial conveyor to take coal off the plateau for export either through New Plymouth via Westport or from Lyttelton.