Paringa signs $26m facility agreement

Ian Middlemas-chaired coal explorer Paringa Resources has secured a $US20 million ($A26 million) facility to fund ongoing development of its Poplar Grove project in the US.

Paringa accepted the loan facility offer from Macquarie Bank, which came along with a $US1.7 million letter of credit facility to allow Paringa to collateralise environmental and other obligations required for the construction and operation of the coal mine.

“We are very pleased to have secured a competitive debt facility from Macquarie, one of the world’s leading providers of finance to the natural resources sector,” Paringa chief executive Todd Hannigan said.

“This finance facility represents another significant milestone for the Paringa team and will allow the company to rapidly progress the Poplar Grove mine into construction and first coal.”

Paringa expects to draw down on the facility next year.

Paringa shares were 1.5 per cent higher to 66 cents each at midday.