Paringa Resources (PNL) has executed a term sheet with Tribeca Global Resources Credit Pty Ltd (Tribeca) for a US$56m Term Loan Facility. This loan will be used to refinance the US$21.7m Macquarie debt facility, fund accelerated expansion and provide working capital. PNL will now bring on a third mining unit at its Poplar Grove mine in the Wk No. 9 seam to generate 2.8Mtpa clean thermal coal. We see this as a significant de-risking event as the delayed construction of the mine was placing the balance sheet under stress in H1 2019. Construction of the mine is now complete and mining is ramping up. The first barged sale is now expected the week beginning 25 March 2019. Argonaut maintains a BUY recommendation with a revised target price of $0.58 (previously $0.80).
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