Patersons Securities will lead manage and underwrite a rights issue that will recapitalise Bounty and allow it to resume trading on the Australian Securities Exchange.

The road to recovery since Bounty emerged from voluntary administration in August 2009 has been longer than the credit crunched March quarter of 2009 – the worst few months the coal industry has faced for many years.

Under the capital raising plan, Bounty chairman Gary Cochrane is expected to hold on to his 17% stake of the company by taking up his full entitlement under the issue.

“A restructured and recapitalised balance sheet and expanded equipment fleet, combined with the current contracts in force provide a strong growth platform for the company,” he said.

“Bounty Mining is well positioned to take advantage of the surging Australian export coal sector which is resulting in increasing demand for underground contracting services in Queensland and New South Wales.

“As owner and operator of one of the few thin-seam equipment fleets in Australia, Bounty is a valuable prospective partner and service provider to coal companies wanting to extract remnant high-grade coal seam deposits that are inaccessible with conventional equipment.

“In addition, our skills in high productivity gate road development should place us in a strong position to secure additional contracts in the broader underground coal sector.”

Bounty won a two-year contract from Anglo American Metallurgical Coal to provide bord and pillar mining services for the Aquila and Bundoora collieries in June.

The loss of this contract from AAMC during the tougher times in 2009 played a role in Bounty’s misfortunes that year.

Further Bounty announcements on its capital raising plans are expected in the next few months.