Bathurst Resources has announced a capital raising plan that may see the company raise up to AU$ 6.87 million in a discounted share placement.
The mining company, which has cut jobs and delayed the start to its Escarpment open cut mine on the Denniston Plateau, pending a recovery in coal prices, had its stock halted from trading on the NZX and ASX for the capital raising.
Capital raising
The capital raising would raise AU$ 6.87 million assuming the company sold 12% of its capital at a discount of 15%.
Bathurst said it was working with an overseas intermediary on behalf of some potential participants in the placement, however it does not yet have full details of their obligations.
Escarpment coal mine
A key focus for the funds raised is the establishment of the Escarpment mine in preparation to enter export markets following the recovery of coal markets. Capital requirements for stage 2 production included AU$ 2 million of working capital, AU$ 2 million for infrastructure at the site and approximately AU$ 1 million for new washing/separator technology.
Edited from various sources by Katie Woodward