The deal to acquire the owner of Coal Exploration Permit 40625, New Brighton Collieries, was struck two years ago with Bathurst previously expected to pay $NZ13.25 million ($A17.3 million) by the end of 2015.
“Under the latest amendment, instead of making this payment, the balance of the purchase price will be satisfied by an ongoing deferred consideration being 5% of gross sales revenue at mine gate on all coal produced by the company in the Ohai area,” Bathurst said.
“The New Brighton permit lies adjacent to Bathurst’s Takitimu mine in Southland and is prospective for high quality sub-bituminous coal. The acquisition will provide Bathurst with expansion opportunities and underpin the company’s long term supply strategy to the south island dairy processing industry under terms which will not impact on the company’s cash reserves.”
Bathurst shelved its flagship, premium hard coking coal export market-targeting Escarpment project in New Zealand about a year ago and has been surviving on its small scale domestic market-serving operations in the country since.
