paringa feederMCLEAN COUNTY, Ky. (3/19/19) — Paringa Resources has announced it’s secured $56 million to fund Poplar Grove Mine’s future.

Paringa said it has secured the credit to refinance existing debt, expand the Poplar Grove development and for working capital from Tribeca Global Resources Credit.

According to Paringa’s announcement, the Tribeca financing is an attractive funding package that provides low overall cost, low shareholder dilution and flexibility in relation to early repayment. Importantly, once the facility is fully drawn Paringa will be funded to immediately begin the expansion of production to 2.8Mtpa at Poplar Grove, previously planned to be funded out of free cash flow.

Debt Financing terms have been approved by Tribeca's Investment Committee with funding subject to completion of remaining due diligence, completion of documentation and satisfaction of conditions precedent typical for financings of this nature. Subject to satisfaction of these remaining conditions, Paringa expects to draw upon the TLF by April 30, 2019.

The Company's existing lender Macquarie Bank Limited is supportive of the refinancing and has committed to providing the final US$6.7 million tranche under the Macquarie facility to the Company, subject to repayment of the US$6.7 million in full by April 30, 2019.

"We are very pleased to have mandated Tribeca to arrange a highly competitive and flexible term loan facility,” said Paringa Managing Director Egan Antill. “The debt financing proposal from Tribeca is a great endorsement of the Poplar Grove Coal Mine and significant milestone for Paringa in accelerating production to 2.8Mtpa."

Underground operations

Underground mining and bottom development continue by both Paringa and the mining contractor. This slope and bottom development contractor has substantially completed the scope of its project and has begun demobilising from the site while punch-list work is completed.

Connection was made to the return air shaft on March 5, with connection to the intake air shaft scheduled for the week of March 18. Paringa is currently operating its continuous miner in the coal seam, mining from the base of the return shaft to the base of the intake shaft, producing raw coal for processing and sale to LG&E. The Company will establish the permanent ventilation system once the connection between the two shafts has been made and the main mine fan is commissioned.

Once the permanent ventilation system has been established, the Company will commence a typical underground room and pillar mining sequence. All other underground infrastructure necessary to operate the first mining unit will be commissioned in the coming weeks.

Bottom area conditions remain favourable and mining has progressed below an area of hard rock initially encountered at the slope bottom. Mining production is now ramping in line with anticipated advance rates. Mine productivity will increase over the next six months as more physical space is developed and additional production equipment is added.

Surface operations

The CHPP is processing raw material from the mine, with feed comprised of raw coal and waste rock material. As anticipated, the proportion of raw coal in the plant feed is increasing as mining activities continue using the company operated continuous miner in the coal seam.
Raw coal stockpile development continues, and the build of initial product stockpiles has commenced.

Coal sales

The Company is on target to deliver first processed coal to cornerstone customer LG&E in the week of 25 March 2019, with sales to other customers AEP and Big Rivers to commence in the coming months.

Above, a surface feeder transferring coal from the Poplar Grove mine to the CHPP (image from video on Company website)

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