https://www.engineeringnews.co.za

Paringa raises A$30m for US coal mine

21st May 2018

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

Font size: - +

PERTH (miningweekly.com) – Coal developer Paringa Resources has announced a A$30-million capital raising to fund the development of its Poplar Grove coal mine, in the Illinois basin, Kentucky.

The company on Monday said that some A$19.2-million had been raised through an institutional entitlement offer, which was priced at 22c a share.

The offer price represented a 34.3% discount to Paringa’s last closing price on May 17, and a 24.9% discount to the company’s five-day volume-weighted average price.

The retail component of the entitlement offer, which is fully underwritten, is expected to raise an additional A$11-million.

Eligible retail shareholders will be invited to subscribe for one new share for every three shares held on the record date, at an offer price of 22c a share. The retail entitlement offer will open on May 24 and will close on June 7.

The funds raised will go towards the development of Poplar Grove mine, where production is targeted for the fourth quarter of this year.

The 2.8-million-tonne-a-year Poplar Grove thermal coal mine forms part of Paringa’s 40 000-acre Buck Creek complex, which also contains the 3.8-million-tonne-a-year Cypress mine, where construction is set to begin in 2019.

Paringa is hoping that the Poplar Grove mine will be cash flow positive by the second quarter of 2019, delivering earnings before interest, taxes, deprecation and amortisation of about A$41-million by 2020, when in full production.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

Comments

Showroom

Showroom image
Alcohol Breathalysers

Supplier & Distributor of the Widest Range of Accurate & Easy-to-Use Alcohol Breathalysers

VISIT SHOWROOM 
Willard
Willard

Rooted in the hearts of South Africans, combining technology and a quest for perfection to bring you a battery of peerless standing. Willard...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 10 May 2024
Magazine round up | 10 May 2024
10th May 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.344 0.396s - 156pq - 2rq
Subscribe Now