Gunns is arguing that the maverick New Zealand-born global investor's 39 per cent stake in the company will comfort potential joint venturers for the $2.3 billion project.

In confirming the foray by the self-described ''contrarian'' investor, the private Richard Chandler Corporation ranked the mill second to Gunns' role as a plantation forestry company.

''We see its future as building a foundation for sustainable development and economic growth which will provide a future for the Tasmanian forestry industry,'' said an RCC senior adviser, Alan Kelly.

RCC said it would work to ''catalyse'' the controversial mill, still unfunded seven years after it was unveiled.

RCC is to spend $150 million on Gunns in a $280 million recapitalisation of the company. RCC will subscribe a $75 million bond, with attaching convertible warrants and an equal amount of fully paid ordinary shares.

These will be issued at 12¢ a share, the same price as a $130 million rights issue offering 1.3 new shares for every share.

Gunns almost doubled its price to hit 23.5¢, before closing up 36 per cent at 17¢.