Paringa Resources has completed its AUS$6.5 million new share placement, the company said in an announcement to the ASX.
The proceeds will used to complete the bankable feasibility study for the Buck Creek No.2 mine and provide funding to commence development of the No.2 mine by mid-2017.
The Buck Creek mining complex is located in western Kentucky region of the Illinois Basin in the US. The complex has a JORC measured and indicated coal resource estimate of 224 million t of thermal coal.
The No.2 mine is a low-CAPEX development with total cost of US$44 million t due to a shallow coal seam depth.
The company is planning to develop the No.2 mine first as part of a multistage development plan to become a supplier of 5.6 million tpy of thermal coal into the eastern US power market.
Edited sources by Jonathan Rowland.
Read the article online at: https://www.globalminingreview.com/finance-business/04082016/paringa-completes-placement-of-new-shares-2016-2161/