Pike River mine investment tops $100m

Pike River Coal invested $56.9 million in its West Coast mine development during the year to the end of June, taking the total invested to $100.4 million.

Releasing its annual results today, the company also said it used some of the $85 million raised in an initial public offering in July to repay $16.5 million in short term loans from shareholders.

The annual result should be viewed in the context of the pre-production status of the company's development activities, Pike River said.

Following the IPO in July, Pike River's largest shareholder NZ Oil and Gas, which has a 31 per cent stake, said it had agreed to provide up to $25 million extra to help develop the mine.

The money raised through the IPO would run out at the end of January, two months before coal production was scheduled to begin, NZOG said at the time.

The annual results put Pike River's total assets at June 30 at $118.1m -- $100.4m of that the mine development. Total liabilities were $45.2m, leaving net assets of $72.9m.

Pike River shares were flat today at 84c, having been issued at $1 and getting as high as $1.08.


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