Here is a news article published today based on the contents of...

Here is a news article published today based on the contents of the Quarterly Report.

"Pike River Coal looking for more funding

| Wednesday, 21 Oct 2009

PRC 1.150 0.020 (+1.77%)

Pike River Coal is considering a share placement or deal with another coal customer to raise $20 million needed to meet operational requirements.

The developer of a coal mine in the Paparoa National Park said in a quarterly activities report today that it does not have final sign off from funder Liberty Harbor on an extension of a convertible bond.

Also, the push out of the date for its first deliveries has increased working capital requirements.

A share placement or deal with another coal customer were options being considered for the $20 million needed to meet operational requirements in the first half of 2010.

The company now expects to ship 20,000 tonnes to 30,000 tonnes in its first coal shipment in the January to March quarter of 2010. It said in its 2009 annual report that it had expected its first coal shipment to be in the first quarter of 2009 at record prices of $US300 ($NZ407) a tonne.

A rockfall at the mine delayed development. The company launched a $45m share option offer in March 2009 to fund costs resulting from the delay.

A 14,000 tonne stockpile now sits at the mine.

Pike River has asked Liberty Harbor to extend a production condition on its $US27.5 million convertible bond to June 30, 2010 from November 30. The condition is that the mine be capable of producing 800,000 tonnes in the 12 months from the condition date.

This requirement will not be met by November 30 and Liberty Harbor has initially given a positive response to the requested extension. It is using an adviser to conduct an independent review before formally advising of its position.

"If Liberty Harbor does not agree to the extension then it would be entitled to require the bonds to be redeemed, with the repayment date not being earlier than 90 days after November 30, 2009," Pike River said.

The board said it was satisfied it could fund the bond redemption and costs of the production delays.

The quarterly report outlined a number of production developments at the mine.

Tests of the three workable coal seams that underlie the Brunner seam have shown coal with exception high fluidity and low sulphur content. The company is mining the Brunner seam and mining of Paparoa seams would require additional approvals from the Minister of Conservation, according to the company's website.

"It is possible that recoverable resources of up to 8 million tonnes may be present from these coal seams," Pike said today.

Pike River contracted coal sales to March 31, 2010 at $US128 per tonne. By October the international spot price has increased to $US160 a tonne.

So far the company has recruited 146 staff.

The mine is 50km north east of Greymouth.

-NZPA

ENDS