Paringa Resources has raised AUS$8 million in a recent share placement to institutional investors, the company said in an announcement to the Australian Stock Exchange.
The Perth-based developer of the Poplar Grove mine in Kentucky, US, placed 19 million shares at an issue prices of AUS$0.42 per share.
The cash raised will be used to complete an updated bankable feasibility study for the potential two-seam coal mining operation at Poplar Grove mine, which is expected in early 2017. It will also provide funding to start development of the mine by mid-2017.
The successful share offering reflected the “quality of the project and the rabidly improving fundamentals of the US coal and energy sector,” said Paringa’s Managing Director and CEO, Todd Hannington.
“Our plan is simple and on track,” continued Hannington. “We will develop low capital and operating cost mines located near river transportation in the Illinois Coal Basin, starting with the low cost and high margin Poplar Grove mine in mid-2017.”
Read the article online at: https://www.globalminingreview.com/finance-business/12122016/paringa-raise-cash-to-fund-poplar-grove-development/