Bathurst Resources Ltd (ASX:BTU) says it has completed the acquisition of Galilee Energy’s (ASX:GLL) wholly owned subsidiary Eastern Resources Group Ltd, for around $32 million.
The coking and thermal coal producer says it has paid Galilee $25.7 million, with a balance of around $6 million due in May.
Perth-based Bathurst Resources says it now controls Eastern operations, including the Takitimu and Cascade coal mines near Westport in New Zealand, which are expected to provide immediate positive cashflow.
Bathurst announced the proposed acquisition at the end of last year and said it will reimburse Galilee $2.4 million in costs incurred for the planned initial public offering of Eastern Resources.
The acquisition was funded through Bathurst’s existing cash reserves.
In the six months to 31 December 2010, Bathurst Resources reported a net loss of $15.6 million.
