Shareholders in West Coast mine developer Bathurst Resources have backed its almost $20 million capital raising efforts this week, its share price up slightly and stable.
Bathurst's cash on hand had diminished to $8 million and it has raised $18.9 million so far from institutional investors, with potentially more to be sought from shareholders.
While Bathurst is operating two small South Island mines, selling about 240,000 tonnes of thermal coal into the domestic market, environmental groups have delayed the start of production of high-quality export coking coal near Westport by about two years with multiple court challenges, mainly to resource consents gained more than two years ago.
From a low of 13c in late June, Bathurst shares had been trading around 20c since.
Bathurst has spent about $300 million acquiring properties around the Denniston plateau above Westport and in making ready to begin production. It has estimated it needs a further $105 million to ramp up production from initially 640,00 tonnes to more than 1 million tonnes by year three.
Bathurst said earlier in the week, the $18.9 million would provide the company with working capital to fund existing operations and the resource consenting process for its Escarpment project.
Bathurst maintains Escarpment as its ''flagship asset'', containing an estimated more than 5.8 million tonnes of high grade coking coal, while its entire West Coast operation has an estimated resource of 84.1 million tonnes.
Further decisions are due shortly from the Environment Court, High Court and Supreme Court.
Only the latter cannot be appealed further.
