Bathurst Resources Ltd, the Australian company planning to develop a large open cast coal mine in the Buller coal field, said it has received government approvals for the acquisition of the project.The company said it has Overseas Investment Office approv
Bathurst Resources Ltd, the Australian company planning to develop a large open cast coal mine in the Buller coal field, said it has received government approvals for the acquisition of the project.
The company said it has Overseas Investment Office approval to acquire the shares of L&M Coal Ltd and consent from Crown Minerals for the transfer of the coal exploration and coal mining permits of the Buller Coal Project.
The company said in a notice of meeting on October 6 that environmental consent is the next key milestone in the process to develop the mine. The company has received positive indications from the New Zealand regulatory authorities and has considerable local support for the project, it said in the notice.
It also said access arrangements had been applied for with the Department of Conservation.
The Press newspaper reported in September that 16 resource consent applications with the West Coast Regional Council and/or eight with the Buller District Council had been notified and interested parties were invited to make submissions.
Bathurst Resources has earlier said it is planning a capital raising of up to $A110 million $NZ143 million) to develop the project. The equity raising consists of a placement of up to 253.4 million shares at A30c a share to raise about $A76 million and a one for two non-renounceable rights issue at A30c a share to raise about $A34 million. The placement is scheduled for completion on November 5, following approval by Bathurst's shareholders at a meeting on the preceding day.
"With the funds raised from the rights issue and the placement, Bathurst is on track to both complete the acquisition of the project and become a coking coal producer in the last quarter of 2011," managing director Hamish Bohannan said in a statement.
The Buller Coal Project covers two permits that cover more than 10,000 hectares of the Buller coal field. The permits largely surround Solid Energy's Stockton open cut mining operation and the goal is to produce similar high quality coal from similar seams mined by Solid Energy, according to the notice of meeting.
Diesel-powered hydraulic excavators and dump trucks will be used to mine and haul coal. At its peak it is hoped that the mine will produce a million tonnes of marketable coal per annum. The notice of meeting said the coal will be carried via train either to the port at Westport or to Lyttelton Port of Christchurch.
The company is budgeting capital expenditure on the project of $A57 million.
Under the purchase agreement, $US5 million ($NZ6.6 million) has been paid in advance and the balance $US35m is payable on completion of the deal expected by November 15, 2010. In addition there are two performance payments of $US40 million to the vendor depending on the success of the project and a royalty to the vendor. The money being raised is to help pay the $US35 million.
