Argonaut as Joint Lead Manager has been successful in raising of A$6.49 million for Paringa Resources Limited (ASX: PNL) (“Paringa”) to institutional and sophisticated investors of 38,200,000 new ordinary shares at an issue price of A$0.17 per share, with Curran & Co.
Proceeds from the capital raising will enable Paringa to complete the Bankable Feasibility Study (BFS) for the Buck Creek No 2 Mine and provide funding for the Company to commence development of the No 2 Mine by mid-2017.
Commenting on the Placement, Paringa’s President and CEO, David Gay said: “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 United States, being surrounded by mines which continue to achieve high EBITDA margins.
The emergence of the low capex Buck Creek No 2 Mine has transformed the economics of the Buck Creek Mine Complex. Paringa’s multi-stage development of the Buck Creek No 2 Mine, followed by the No 1 Mine, will ultimately allow the Company to become a strategic 5.6 Mtpa supplier of high quality coal into the Eastern US power market.
We further 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 from higher cost mines.”
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.