Perth-based Bathurst Resources (NZX: BTU), which is planning to develop a large open cast coal mine in the Buller coal field, is dual listing on the NZX sharemarket today.The company confirmed the move which was in accordance with its agreement with L&
Perth-based Bathurst Resources (NZX: BTU), which is planning to develop a large open cast coal mine in the Buller coal field, is dual listing on the NZX sharemarket today.
The company confirmed the move which was in accordance with its agreement with L&M Coal Holdings to buy the Buller Coal project.
Bathurst announced the settlement of the Buller Coal project acquisition from L&M Coal earlier this month. The Buller project covers more than 10,000ha of the Buller coal field, largely surrounding Solid Energy's Stockton opencut mining operation.
Under the purchase agreement, $US5 million ($NZ6.6m) was paid in advance, with $US35m paid on settlement. In addition there are two performance payments of $US40 million to the vendor depending on the success of the project and an ongoing royalty to the vendor.
Last week, Bathurst said it was paying $A35m ($NZ45.2m) for another coal project in the Buller region, buying Eastern Resources Group from Galilee Energy.
The purchase will increase Bathurst's Buller coal resources by 55 percent, consolidating its Buller permits with Eastern's Whareatea West exploration permit.
The Whareatea project is in the middle of Bathurst's Denniston plateau project. It would bump up Bathurst's coal resource from 47.1m tonnes to 72.8m tonnes and could extend the mine life by over a decade to about 30 years, said Bathurst managing director Hamish Bohannan.
