21/05/2018 - 15:23

Paringa raises $30m

21/05/2018 - 15:23

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Shares in the Ian Middlemas-led Paringa Resources fell sharply today after the company completed a $30.2 million capital raising at a heavily discounted price of 22 cents per share, with the proceeds to fund construction of its Poplar Grove coal mine located in the US.

Paringa raises $30m
Once in full operation, the mine will have a production capacity of 2.8 million tonnes per annum.

Shares in the Ian Middlemas-led Paringa Resources fell sharply today after the company completed a $30.2 million capital raising at a heavily discounted price of 22 cents per share, with the proceeds to fund construction of its Poplar Grove coal mine located in the US.

Shares in Paringa finished off 25.4 per cent at 25 cents each today.

The last time the stock traded as low as 22 cents was in September 2016, while they briefly touched a high of 65 cents in April last year.

The raising comprised a placement and institutional entitlement offer raising $19.2 million, and a fully underwritten retail entitlement offer set to raise an additional $11 million.

The entitlement offer took place on a one-for-three basis.

Argonaut Capital acted as lead manager to the raising, and was also sole bookrunner and underwriter.

The company said the raising completed the funding required for the mine, located in the Illinois Coal Basin.

Once in full operation, the mine will have a production capacity of 2.8 million tonnes per annum.

The spending includes an optimised coal seam access, upfront equipment lease payments, satisfy the equity condition precedent to drawdown of the Macquarie Bank debt financing facility, and for general working capital purposes.

Paringa is targeting first production in October this year.

Shares in Paringa finished off 25.4 per cent at 25 cents each today.

 

 

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