Paringa Resources Ltd. is pleased to advise that Tribeca Global Resources Credit Pty Ltd. has agreed to provide a term loan facility (TLF) of US$56 million for the purpose of refinancing existing debt, expansion development of Paringa Resources’ Poplar Grove Coal Mine and working capital.
The funding package provides low overall cost, low shareholder dilution and flexibility in relation to early repayment. Paringa will be able to immediately begin the expansion to increase production to 2.8 million tons per year (tpy) at Poplar Grove, previously planned to be funded out of free cash flow, according to the company.
Subject to satisfaction of the remaining conditions, Paringa expects to draw upon the TLF by April 30.
“We are very pleased to have mandated Tribeca to arrange a highly competitive and flexible-term loan facility,” Paringa Managing Director Egan Antill said. “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 2.8 millon tpy.”