The site of the Pike River Coal mine. Photo / Simon Baker
New Zealand Oil & Gas said today it would raise a minimum of $65 million from an IPO (initial public offering) involving West Coast coal mine Pike River Coal.
NZOG said it had registered a prospectus for the four-times delayed IPO with the Companies Office today.
The offer
was being made to investors in New Zealand and Australia.
NZOG said it would continue to hold at least 34.6 per cent of Pike River after the float, from a 61 per cent stake at present.
Indian interests would hold 20.6 per cent.
Part of the reason for the float's delay was due to the bedding down of a $20m investment by Indian company Gujarat NRE Coke, and arranging finances.
Gujarat became the project's third cornerstone investor in June last year when it injected $20m into the company.
It had agreed to buy 40 per cent of Pike's production for the life of the mine.
The other cornerstone investor was Indian coking coal company Saurashtra Fuels, which paid $17m for a 10.6 per cent stake.
The money raised by the IPO would allow the company to continue developing the mine.
The minimum application for New Zealand resident investors is $3000 and for Australian resident investors is either $3000 or, if applying in Australian dollars, A$3000 ($3416).
Lead broker to the offer is McDouall Stuart Securities.
"The IPO is a key step in the funding package required to bring this very exciting mining project to fruition," Pike River chairman John Dow said.
Pike River intends to mine 17.6 million tonnes of coal identified as recoverable from the Brunner seam in the Paparoa ranges, 46km northeast of Greymouth.
At today's prices and exchange rates, the 17.6 million tonnes has a gross sales revenue value of $2.3 billion.
Hard coking coal is the highest value type of coal and is used to provide energy and act as a catalyst in the steel making process.
Pike River coal has ultra low ash and high fluidity, qualities particularly sought after by coke manufacturers and steelmakers.
More soon.
- NZPA
