PERTH (miningweekly.com) – Coal miner Paringa Resources has agreed to a $56-million debt facility with Tribeca Global Resources Credit to refinance its existing debt, fund the accelerated expansion of the Poplar Grove operation, and for general working capital.
The ASX-listed company on Friday said that the first $40-million tranche of the term loan facility will be drawn down in the coming days, following the satisfaction of customary conditions precedent.
Tranche 1 will refinance the Macquarie project loan facility and provide working capital at close.
Drawdown of the second $16-million tranche of the loan facility is expected in the second half of 2019 subject to lender discretion, the satisfaction of certain ramp-up tests, and other customary conditions precedent.
Tranche 2 will fund the capital expansion of the third mining unit at the Poplar Grove mine, in Kentucky.
As part of the terms of the loan facility, Paringa will issue 18-million options to the lenders on the first drawdown, each with a strike price of 20c each and expiring four years from the date of issue.
Subject to shareholder approval, Paringa will issue a further seven-million options to the lenders, on the same terms, and three-million shares to Argonaut for its financial advisory services.