Resource Pacific raised the money via a placement to Australian and overseas institutional investors of 25,300,000 new ordinary shares at $1 per share.
The company said the new funds would be used to maintain its conservative gearing and reduce its need to draw down available banking facilities.
Subject to shareholder approval Resource Pacific also plans to place new ordinary shares at $1 each with Marubeni. Resource Pacific said Marubeni had helped the company establish contracts with major steel mills and power utilities, and the placement would strengthen the relationship between the two countries.
The company’s installation of the longwall at its Newpac mine remains on schedule for January 2007 commencement, managing director Paul Jury said.
Resource Pacific was trading at $1.10 early this afternoon.