Coal news and updates

Paringa Resources securing cash for Buck Creek No. 1 mine

Paringa Resources Ltd has completed a bookbuild for a placement of 15 million shares at US$0.34 each to raise US$5.1 million.

The issue price of US$0.34 represents a 6.3% discount to the 30-day VWAP. The company will also issue 7.5 million free attaching options on a one for two basis (each exercisable at US$0.50 and expiring on 31 July 2018).

The proceeds will contribute to strengthening the balance sheet for when the company begins formal debt financing discussions in order to enable construction of the proposed Buck Creek No. 1 mine. It will also provide adequate funding for the re-development activities of the proposed mine.

Messrs Todd Hannigan, Paringa Director and Thomas Todd (Alternate Director) will be involved in the placement by subscribing for 750 000 shares each, subject to completion of necessary approvals.

As a result of the proposed participation by directors, the company will complete the placement in two tranches as follows:

    13 500 000 shares and 6 750 000 attaching options will be issued under Listing Rule 7.1 early next week to raise gross proceeds of US$4 590 000.
    1 500 000 shares and 750 000 attaching options will be issued to directors following shareholder approval to raise gross proceeds of US$510 000.

Paringa’s President and CEO commented: “We have a very active year ahead and securing these high quality US institutional investors is a very positive step for the company, which underlines the Buck Creek No.1 mine’s scale and potential to become one of the next strategic sources of premium coal in the US. It’s also pleasing to see my fellow directors participating in the placement, which further reinforces the quality of the Buck Creek No.1 mine.”

source: http://www.worldcoal.com