Galilee proceeds with NZ coal spin-off

GALILEE Energy will float 125 million shares of its New Zealand coal-producing subsidiary Eastern Resource Group at 20c each to raise $A25 million.
Galilee proceeds with NZ coal spin-off Galilee proceeds with NZ coal spin-off Galilee proceeds with NZ coal spin-off Galilee proceeds with NZ coal spin-off Galilee proceeds with NZ coal spin-off

The Takitimu mine in NZ, courtesy of Eastern Corporation.

Blair Price

The company has mailed out the prospectus to shareholders and any remaining shares will become available under the public offer.

ERG shares are expected to be allotted on December 2 while normal trading on the Australian Securities Exchange is due to start on December 9.

Galilee said the funds raised would allow ERG to conduct a bankable feasibility study of its Wareatea West coking coal project, near its Cascade mine on the South Island.

ERG’s Cascade and Takitimu mines collectively produce more than 150,000 tonnes per annum of thermal coal for the domestic market.

Galilee also knocked back an “incomplete” $30 million offer for ERG from New Zealand coking coal explorer Bathurst Resources last week.

Galilee was formerly known as Eastern Corporation, before the company acquired Queensland coal seam gas player Galilee Energy in June and subsequently adopted the name.

Patersons Securities has fully underwritten the ERG initial public offering, which will reduce Galilee’s stake to just under 22%.

Galilee shares are unchanged at 21.5c this morning.

topics

loader