PERTH (miningweekly.com) – ASX-listed coal developer Paringa Resources will raise some A$8-million through an institutional placement to complete an updated bankable feasibility study (BFS) for the Poplar Grove mine, in Western Kentucky’s Illinois basin.
The company will offer 19-million shares, at 42c each, to institutional investors to raise the funds.
“We are pleased with the strong institutional support received for this placement, which significantly enhances the nature of our register and reflects the quality of the project and the rapidly improving fundamentals of the US coal and energy sector,” Paringa MD and CEO Todd Hannigan said on Monday.
“The funds will allow Paringa to accelerate some of the key items required for Poplar Grove, with a key objective to derisk the development schedule for the project.
“Our plan is simple and remains on track, we will develop low capital and operating cost mines located near river transportation in the Illinois coal basin, starting with the low-cost and high-margin Poplar Grove mine in mid-2017.”
An earlier BFS into the Poplar Grove mine has estimated that the project will require a capital investment of $40-million to develop a 1.8-million-tonne-a-year operation.
Once Poplar Grove is established, the company will make modular expansions to the mine’s capacity, followed by the development of the fully permitted 3.9-million-tonne-a-year Cypress mine.
The combined Buck Creek complex is expected to generate average earnings before interest, taxes, depreciation and amortisation of $132-million, if the two mines are operating at full capacity.
Edited by: Creamer Media Reporter
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