Resource Pacific continues rights issue quest

RESOURCE Pacific produced 161,000 longwall tonnes and 67,000 development tonnes from its Newpac mine during the September quarter.

Angie Tomlinson

While 228,000t was produced, the sales volume for the quarter was up to 282,000t as Resource Pacific depleted its mine and port stockpiles.

With the second longwall panel due to start mid-November, which Resource Pacific has attributed to late equipment deliveries and equipment "teething problems" affecting development, the company says it has reached an agreement with customers for deferred shipments.

Resource Pacific has continued its call for shareholders to approve a $A45 million rights issue to aid company growth.

While the company had previously announced its intentions for the issue, the plan was delayed due to New Hope Coal's announcement during September that it intended to make a bid for Resource Pacific.

The company said if the rights issue is approved, it will use about $13 million by December 2007 to acquire assets needed for the continued operation and development of the mine.

"For example we will acquire water licences, complete installing the next ventilation fan and complete reject emplacement facilities. A further $22 million will be used to purchase the second faceline for the longwall," the company said.

The balance will be used to cover immediate working capital needs and the costs of fund raising.

Resource Pacific shares were up 0.82% to $2.46 during midmorning trade.