Paringa Resources Ltd. plans to raise about A$11 million via a retail entitlement offer of 1 new share for every 3 shares held at 22 Australian cents per share after completing a placement and an institutional entitlement offer.
The company said May 21 that it raised about A$19.2 million at the same price, including about A$12.2 million from the institutional entitlement offer and a further A$7 million from the placement.
The funds will be used to complete construction of the Poplar Grove coal mine in Kentucky, including upfront equipment lease payments and satisfying the equity condition for the drawdown of the Macquarie Bank Ltd. debt financing facility, and for general working capital purposes.
The retail offer will open May 24 and close June 7.
The company previously said the mine's 2018 and 2019 production off-take is almost fully committed, and future coal sales contract efforts are focused on delivery from 2020 onward.
