New Zealand’s Pike River Coal to issue bonds and shares

New Zealand-based coking coal producer Pike River Coal Ltd said on Wednesday that it will issue shares and bonds to enhance its finances. The company plans to raise around NZ$92 million ($63 million) through the process.

An issue of around NZ$50 million-worth of shares and a convertible bond worth around NZ$42 million will take place.

Major stakeholder New Zealand Oil & Gas Limited (NZOG) has agreed with the plan in order to raise more funds for Pike River’s South Island mine construction. The mine has been experiencing problems which have postponed commissioning and has been pushing for extra capital.