The placement consists of two tranches, the first of which raised $21.6 million through a placement of 18.75 million shares and the second will involve the placement of an additional 24.73 million shares to raise $28.4 million. Resource Pacific’s issued share base will total 168.66 million shares following the placements.

“We are delighted with the support we have received from both overseas and Australian institutions,” company chief Paul Jury said.

“Demand exceeded our target and the board decided to take advantage of the situation to raise additional funds to maintain conservative gearing.”

The company said the mine is still on schedule to start longwall production in January with the roof supports due to arrive in Australia in next month. Construction of surface infrastructure and refurbishment of the coal preparation plant are on schedule and the conveyor system is two-thirds complete.

Resource Pacific said project finance providers required the fundraising to accommodate a shortfall in the forecast EBITDA.

The company was hoping to have funds from a separate deal it is negotiating with Korea Electric Power Corporation for a 5% placement, a 5% interest in Newpac mine and a ten-year offtake contract, but this has not been completed.

“In addition, costs of approximately $10 million are forecast to be incurred to provide plant hire and contract labour to enable mine development to be completed so that longwall [operations] can commence on time,” the company said.