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Last updated 16 Oct 2008 at 8:20am

Pike River Coal

NZOG is a major shareholder in PRC

The Pike River Coal mine is on the West Coast of New Zealand’s South Island. It is an underground mine targeting high value coking coal.

Background

A former subsidiary of NZOG, Pike River Coal Ltd (PRC) became a separately listed company on the NZX and ASX following a successful initial public offering (IPO) in July 2007. NZOG retained a stake of around 31%.

In early 2008, PRC successfully completed a $60m rights issue and a US$30m convertible bond issue to secure further funding for the mine development through to commercial coal production. NZOG underwrote its $17.5m share of the rights issue.

First production of coking coal from the Pike River mine is expected in October 2008, with production then building from 2009 to over 1 million tonnes per annum. 

NZOG's interest in PRC

NZOG has a stake of just over 30% in PRC, through:

  • #81,730,089 shares
  • #11,016,747 options
  • #3,500,000 convertible notes (equivalent to 3,211,009 shares when converted).

NZOG has two directors on the seven-person Pike River board.

Further information on Pike River Coal Ltd is available from www.pike.co.nz

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