Bounty to chase more cash

BOUNTY Mining says it will go to the market to raise a further $A500,000 to pull through further costs and delays as work ramps up at its Chain Valley contract in New South Wales.
Bounty to chase more cash Bounty to chase more cash Bounty to chase more cash Bounty to chase more cash Bounty to chase more cash

Chain Valley production since start of mining in May 2009, courtesy Bounty Mining.

Angie Tomlinson

Bounty had already raised $1.02 million in May, however high costs and some unforeseen delays in achieving the higher status of mining equipment compliance in NSW continued to affect the company after the initial raising.

The company said the additional delays had not allowed it to have a full fleet of equipment available to achieve budgeted production at Peabody’s Chain Valley operation.

“Bounty now has all equipment in place and certified, and production rates have been increasing over the last eight weeks since production commenced at Chain Valley in May,” the company said this morning after emerging from a trading halt.

To meet its capital requirements, Bounty will issue 16,666,667 shares at 3c each within a week.

Earlier this year Bounty lost two contracts in Queensland, finishing up in the state in early April before starting its new contract at Chain Valley mid-May.

“The lack of revenue has adversely affected the company, compounded by the cost of redundancies relating to the Queensland operations, and the relocation of its remaining workforce to NSW. There have also been additional mobilisation costs in relation to equipment relocation and meeting NSW compliance standards,” Bounty said.

Bounty is now achieving 4000 tonnes per week after climbing from 500t in May.

The company said it continued to look for further mining opportunities in Queensland and New South Wales.

Bounty was trading unchanged at 2.8c this morning.

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