Paringa Resources has raised AUS$6.49 million from a bookbuild placement of 38.1 million shares at an issue price of AUS$0.17 per share.
The proceeds of the placement will be used to complete the bankable feasibility study for the Buck Creek No. 2 mine and provide funds to being development of the No. 2 mine by mid-2017.
“The strong institutional support received underlines the quality of the Buck Creek mine complex, which we believe is one of the best undeveloped coal projects in the US, being surrounded by mines which continue to achieve high-EBITDA margins,” said David Gay, Paringa’s President and CEO.
Paringa’s development of the Buck Creek complex includes the initial low-CAPEX No.2 mine followed by the larger No.1 mine, with the site eventually reaching production of 5.6 million tpy of thermal coal for supply to the eastern US power market.
“We believe Paringa offers excellent exposure to the improving fundamentals in the US coal market, as US thermal coal stockpiles continue to deplete due to rising natural gas prices, favourable weather patterns and severe production cuts form higher-cost mines,” concluded Gay.
Edited by Jonathan Rowland.
Read the article online at: https://www.globalminingreview.com/finance-business/29072016/paringa-resources-raises-aus6-5-million-2016-2112/