Go-ahead for Pike issue

Shareholders have given Pike River Coal the go-ahead to issue convertible bonds worth up to US$30 million ($38.3 million), as the company works towards starting production from its West Coast coal mine.

The company said a resolution to issue the bonds to investment firm Liberty Harbor was unanimously passed on a show of hands at a special meeting of shareholders on Monday.

Proxies for the meeting were received from 411 shareholders. Of those proxies 118.8 million, 99.7 per cent, were in favour of the resolution, while 107,000 were against.

Pike River shares closed up 5c yesterday at $1.03.

- NZPA