“At the Pike River coking coal mine development, the major construction activity, the tunnel excavation, is making headway and will be substantially progressed at the time of the public offer in February 2007," executive chairman Tony Radford said.
New Zealand Oil & Gas shareholders will receive entitlements to a substantial portion of the float, at a ratio of one PRCL security priced at $1 per share for every eight NZOG shares held at the relevant date.
It was announced last month that a major Australasian bank had been mandated to arrange a $65 million project loan, of which $60 million is to be available for capital expenditures. Westpac Banking Corporation was appointed to arrange the project facility on the basis of an agreed terms sheet.
The Pike River coking coal mine, in the South Island, is expected to produce 250,000 tonnes for the first year, rising to 1 million tonnes the following year. Initial coal production is scheduled to commence in the second quarter 2007.
