Australian resource companies Bathurst Resources and Comet Ridge are stepping up their plans for coal and coal seam gas developments in NZ.Perth-based explorer Bathurst has announced plans to raise $A110 million for the acquisition settlement and developm
Australian resource companies Bathurst Resources and Comet Ridge are stepping up their plans for coal and coal seam gas developments in NZ.
Perth-based explorer Bathurst has announced plans to raise $A110 million for the acquisition settlement and development of its Buller coalfield project.
The company’s $A76m share placement has already been snapped up by international investors, a “testament to the quality of the Buller project and its potential upside,” managing director Hamish Bohannan said in a statement.
The second part of the equity raising, a $A34m rights issue, is subject to approval by shareholders at a meeting next month.
Bathurst is in the process of acquiring Buller permit holder L&M Coal from Christchurch based group L&M, which will retain a 5% share of the Buller project.
An estimated $A37m of the capital raising announced this week will be spent on the next phase of the L&M Coal acquisition, another $A60m on project development and the remaining $A13m used to cover working capital and contingency costs.
Over the next three months, Bathurst hopes to achieve an NZX dual-listing – making it the stock exchange’s second listed coal company behind Pike River Coal – and advance offtake agreements, environmental consents and reserve upgrades.
Mr Bohannan said the new funds would ensure Bathurst is on track to complete the acquisition of the project and become a coking coal producer in the last quarter of 2011.
Comet Ridge plans ‘NZ first’ survey
Meanwhile, Brisbane-based coal seam gas explorer Comet Ridge has announced plans to advance its NZ exploration programme using what it says is the country’s first aerial imaging of coal seam gas deposits.
The aerial data collection will cover two permits on the West Coast and one in the northern Waikato – a total area of between 1000 and 2000 square kilometres.
The programme will begin towards the end of 2010 or early 2011 with first drilling expected to occur in the second half of 2011.
Comet Ridge managing director Tor McCaul told Radio NZ last week that electricity generation from the company's coal seam gas discoveries could begin within 18 months.
