PERTH (miningweekly.com) – ASX-listed Paringa Resources has presented shareholders with a share consolidation and capital raise proposition to allow it to restart share trading on the ASX.

Paringa in February 2020 announced the sales of its US coal assets after filing for bankruptcy in the US. The US operations were down in February of this year.

Paringa at the end of last year switched its focus to gold exploration, acquiring the Onslow gold project in Western Australia.

The company has now unveiled plans for a 20-for-1 share consolidation, reducing the number of its shares to 31.6-million. Paringa told shareholders that the share consolidation would create a more appropriate and effective capital structure for the company, and a share price more appealing to a broader range of investors.

In addition to the share consolidation, Paringa has also announced its intention to raise up to A$5.58-million through a share placement and 1-for-1 pro-rata entitlement issue.

Up to 40-million shares would be placed in the share placement, with a further 71.6-million shares under the entitlement offer, priced at 5c each.

Meanwhile, Paringa on Thursday reported that it had entered into a deed of release with its secured lenders to release Paringa from all obligations and liabilities as parent company guarantor to the group’s $40-million term loan facility and related finance documents.

The lenders have entered into the agreement in return for 35-million shares and 20-million options on a post share consolidation basis, subject to shareholder approval.

Paringa on Thursday also announced that it had entered into a tenement sale agreement to acquire an 80% interest in an exploration licence adjacent to its own Onslow project, in exchange for A$150 000 in cash and 15-million shares in the company, with half of the shares to be issued on the completion of the acquisition and the second half on the delineation of a resource of at least 200 000 oz of contained gold.

The company would also free-carry the 20% interest retained by the vendor until the completion of a definitive feasibility study.

Shareholders will also be asked to vote on a name change from Paringa Resources to GCX Metals.