Paragon Coal secures exploration finance for T9 West
PERTH (miningweekly.com) – ASX-listed junior Tiaro Coal on Tuesday reported that its 47.6%-held subsidiary Paragon Coal had secured A$3.6-million in funding to advance exploration and assessment work on its T9 West project, in Queensland.
Paragon shareholder China Qinfa Group has agreed to provide the funding in a share subscription agreement, which would take the Chinese firm’s stake in Paragon to 40.5%.
The A$3.6-million funding would be made through a series of investment tranches, with an initial A$1-million already received. The balance of the funds would be paid prior to the end of the year.
The China Qinfa investment followed the announcement of a Joint Ore Reserves Committee-compliant resource of 87-million tonnes in the T9 West project area, as well as an exploration target of between 200-million and 300-million.
Tiaro told shareholders that Paragon had identified additional coal surrounding the T9 West area, but this coal had not been considered in the initial mine plan. Exploration to test likely extensions of the T9 West sequence into these adjacent priority targets was currently being planned.
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