Paringa Resources Ltd. aims to raise about A$5.1 million from a nonrenounceable pro rata entitlement offer priced at 5 Australian cents per new share, with closing expected Nov. 8.

The company said Oct. 21 that it is offering eligible shareholders one new share for every five existing shares held, with the offer fully underwritten by Argonaut Capital Ltd.

Paringa Resources will use the proceeds to fund an ongoing ramp-up to positive cash flow at its Poplar Grove coal mine in Kentucky, to satisfy a US$5 million equity raising condition under a proposed US$9 million royalty financing from Tribeca Global Resources Credit Ltd. and loan amendments with Tribeca Global Resources Credit Pty. Ltd., and for general working capital purposes.

The company announced plans in September to raise cash amid a funding gap at Poplar Grove due to the mine ramping up more slowly than expected. The operation delivered its first coal in April.