Argonaut as Joint Lead Manager has been successful in raising of A$8 million for Paringa Resources Limited (ASX: PNL) (“Paringa”) to institutional investors of 19 million new ordinary shares at an issue price of A$0.42 per share, with Curran & Co.
Proceeds from the capital raising will be used to complete an updated Bankable Feasibility Study (BFS) for a potential two coal seam operation at the Poplar Grove Mine in early 2017 and to provide funding for the Company to commence development of the Poplar Grove mine by mid 2017.
Commenting on the Placement, Paringa’s Managing Director and CEO, Todd Hannigan said: “We are pleased with the strong institutional support received for this Placement which significantly enhances the nature of our register and reflects the quality of the project and the rapidly improving fundamentals of the US coal and energy sector. The funds will allow Paringa to accelerate some of the key items required for Poplar Grove, with a key objective to de-risk the development schedule for the project. Our plan is simple and remains on track – 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."
Argonaut is delighted to continue to provide support to Paringa and looks forward to our ongoing work with the company.
Additional information regarding Paringa and the Capital Raising can be found on the company’s website at www.paringaresources.com.