Shareholders in West Coast mine developer Bathurst Resources
have backed its almost $20 million capital raising efforts
this week, its share price up slightly and stable.
Bathurst's cash on hand had diminished to $8 million and it
has raised $18.9 million so far from institutional investors,
with potentially more to be sought from shareholders.
While Bathurst is operating two small South Island mines,
selling about 240,000 tonnes of thermal coal into the
domestic market, environmental groups have delayed the start
of production of high-quality export coking coal near
Westport by about two years with multiple court challenges,
mainly to resource consents gained more than two years ago.
From a low of 13c in late June, Bathurst shares had been
trading around 20c since.
Bathurst has spent about $300 million acquiring properties
around the Denniston plateau above Westport and in making
ready to begin production. It has estimated it needs a
further $105 million to ramp up production from initially
640,00 tonnes to more than 1 million tonnes by year three.
Bathurst said earlier in the week, the $18.9 million would
provide the company with working capital to fund existing
operations and the resource consenting process for its
Bathurst maintains Escarpment as its ''flagship asset'',
containing an estimated more than 5.8 million tonnes of high
grade coking coal, while its entire West Coast operation has
an estimated resource of 84.1 million tonnes.
Further decisions are due shortly from the Environment Court,
High Court and Supreme Court.
Only the latter cannot be appealed further.