KEY POINTS:
Renewed questions over the float of Pike River Coal emerged last night amid talk that the fledgling company's independent directors had resigned.
It is not clear what has sparked the alleged dispute, although talk centres on whether Pike's shareholders - particularly 61 per cent shareholder New Zealand Oil and Gas - are extending sufficient funds to develop the mine ahead of the float.
NZOG general manager Gordon Ward and the independent directors, chairman James Ogden and director Dennis Wood, declined to comment.
If the talk is correct, it will be the latest in a series of blows to Pike, which is developing a mine capable of producing high-quality coking coal in the Paparoa Range, northeast of Greymouth.
Last month, NZOG put the float on hold for the fourth time this year. It said it hoped to finally register a prospectus in February. It originally planned to float at the start of this year.
The project will cost about $174 million to develop, including working capital of $30 million. This was to be covered by the $60 million equity Pike has raised from two Indian investors, NZOG and other minority investors. The remainder was to be covered by a $65 million loan from Westpac and the float, which will raise $60 million to $65 million.
Ward earlier told the Herald launching in February gave a clean run when the banks had returned from the holidays.
NZOG shares yesterday closed down 2c at $1.07.
Pike river
* A mine near Greymouth producing high-quality coal.
* Development cost: $174 million.
* Float due next year to raise $60 million to $65 million.
* Rest of the project funded by debt and cash from recent equity raising.
