20 Apr 2010

Pike River Coal to raise $50 million

2:13 pm on 20 April 2010

Pike River Coal is planning to raise $10 million in a share placement, and $40 million with a rights issue for shareholders.

Chief executive Gordon Ward says the money will provide funding to ramp-up hydo-mining operations, and provide a buffer of $18 million.

Mr Ward says UBS and McDouall Stuart Securities will be joint lead managers, and the rights issue will be fully underwritten by UBS, McDouall Stuart Group, New Zealand Oil and Gas and Indian customer and shareholder Gujarat.