West Perth-based Bathurst Resources hopes to raise $110 million to provide funds for the acquisition and development of its Buller coking coal project in New Zealand.
West Perth-based Bathurst Resources hopes to raise $110 million to provide funds for the acquisition and development of its Buller coking coal project in New Zealand.
The company is planning a placement of up to 253.4 million shares at 30 cents per share to raise approximately $76 million and a 1 for 2 non-renounceable rights issue at the same share price to raise $34 million.
The company has already received firm commitments for the placement from professional and sophisticated investors in Australia, New Zealand, Asia, North America and Europe and was significantly oversubscribed.
Helmsec Global Capital acted as the lead manager of the placement and rights issue.
"The strong support for Bathurst from international and Australian institutional investors is testament to the quality of the Buller Project and its potential upside," said Bathurst's managing director Hamish Bohannan.
"The Rights Issue allows Bathurst's existing shareholders to participate on the same terms and in the same timeframe."
See company statement below:
Bathurst Resources Limited (ASX: BTU, "Bathurst") is pleased to announce the raising of up to A$110 million to provide additional funds for the acquisition settlement and development of its Buller coking coal project ("Buller Project") in New Zealand.
The equity raising consists of:
* a placement of up to 253.4 million shares at A$0.30 per share to raise approximately A$76 million ("Placement"); and
* a 1 for 2 non-renounceable rights issue at A$0.30 per share to raise up to approximately A$34 million ("Rights Issue").
The Company has received firm commitments for the Placement which was keenly sought by professional and sophisticated investors in Australia, New Zealand, Asia, North America and Europe and was significantly oversubscribed. The Placement is subject to approval by Bathurst's shareholders at a meeting being convened for 4 November 2010.
Helmsec Global Capital Limited acted as Lead Manager of the Placement and Rights Issue and Allion Legal acted as legal counsel.
Bathurst's Managing Director Hamish Bohannan said: "The strong support for Bathurst from international and Australian institutional investors is testament to the quality of the Buller Project and its potential upside."
"The Rights Issue allows Bathurst's existing shareholders to participate on the same terms and in the same timeframe."
"The Bathurst and L&M teams have done a great job in developing the Buller Project to its current state. The next step is for Bathurst to seek shareholder approval to acquire the project from L&M Coal Holdings Limited at a General Meeting to be convened in the coming days."
"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."
"Over the next 3 months, Bathurst expects to achieve the following additional milestones:
* Overseas Investment Office approval;
* Listing on the New Zealand Stock Exchange
* Announcement of Heads of Agreements with offtake partners;
* Environmental approvals and consents; and
* Upgrades to our Resources and Reserves at the Buller Project."
"Bathurst is looking forward to 2011 as we move from being a developer to a producer."
The Placement is scheduled for completion on Friday, 5 November 2010 following approval by Bathurst's shareholders. Participants in the Placement will be not eligible to participate in the Rights Issue. Full details of the Rights Issue and Placement, including indicative timetable, will be provided in the notice of meeting and Rights Issue prospectus which is expected to be lodged later this week.
