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
