Strong investor interest for shares in the hard coking coal miner resulted in all 65 million shares in the IPO being allocated plus 20 million in oversubscriptions, raising a total of $85 million.
The funds will be used for the ongoing development of the hard coking coal resource owned by Pike River near Greymouth and to reduce the amount of debt required.
“Investors recognised that this is a high quality project that will source a premium product for the increasing demands of the steel industry,” Pike River CEO Gordon Ward said.
“Hard coking coal prices have firmed on the spot market this year and the trend is likely to continue into 2008 when the Pike River mine begins production.”
Full production, averaging 1 million tonnes a year, is scheduled to begin in 2009.
At today’s prices, the Pike River coal mine is expected to generate $2.3 billion in export receipts over its lifetime.
At present a 2.3km access tunnel to the coal in the Paparoa Ranges is closing in on the halfway mark and is currently at 1038m.
Meanwhile, work is proceeding on the necessary infrastructure to support the mine including a coal preparation plant, offices, workshops and staff facilities to support 150 employees.
Coal will be transported by road to Greymouth and moved on two vessels to Port Taranaki for export to India, Japan, Brazil, Europe and other markets.
More than 70% of the first three years’ production has already been sold.
Pike River shares will be quoted on the NZSX and the Australian Securities Exchange under the code PRC.
