Bathurst Resources Ltd has raised A$7.39 million by selling 123 million of its shares at A$0.06 (NZD0.065) apiece to institutional investors. The Wellington-based firm will use the proceeds of the discounted placement to fund its Escarpment open-cut coal mining project on the Denniston Plateau, according to The National Business Review (NBR).

Managing director Hamish Bohannan said: "The company has recently announced initiatives to preserve cash while we await our final authority to commence operations at Escarpment. The proceeds of this placement will be used for working capital for the initial development phase of the project so we can move quickly into full commercial production once international coal prices recover."

According to Bohannan, the company is also considering "a small entitlement issue" for its present shareholders. This issue, which would be announced soon, would have a ratio of up to one for 10, the report added.

The mining company made an announcement in February about cutting 29 jobs to keep up with the all-time low prices of coking coal. This is the lowest that the prices have slumped in nine years, NBR reported.