The funds will allow the company to continue developing its Pike River coal mine on New Zealand’s South Island, which has 17.6 million tonnes of identified premium hard coking coal.
First commercial production from Pike River is scheduled for the March 2008 quarter, with production ramping up to over 1Mt per annum.
The IPO invites subscriptions for 65 million ordinary shares at $1 each, with a minimum application of $3000.
“The IPO is a key step in the funding package required to bring this very exciting mining project to fruition,” Pike River chairman John Dow said.
New Zealand Oil & Gas Limited (NZOG) will remain Pike River’s largest shareholder after the IPO, with 34.6% (excluding over-subscriptions) of the ordinary shares on issue.
Indian coke makers and Pike River investors Gujarat NRE Coke and Saurashtra Fuels Private will hold 11.1% and 9.5% respectively.
Pike River has sought approval for the shares to be listed on the New Zealand Stock Exchange and to commence trading on July 20, 2007.
An application will be made to the Australian Stock Exchange for trading to commence on the same day.
