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Paringa Resources Closes USD 9 Million Royalty Financing

Coal News - Published on Fri, 29 Nov 2019

Image Source: Paringa Resources
Paringa Resources Limited announced that it has granted a royalty over the company's Buck Creek Mining Complex to SP2 Royalty Co LLC, an entity of which certain funds advised by Tribeca Global Resources Credit Pty Limited are members, to raise USD 9 million. Proceeds from the Royalty Financing have been received and will be used to fund Poplar Grove's mine ramp-up to positive cash flow.

The Company has also executed an amendment to the Term Loan Facility with Tribeca to, amongst other things, resize the second tranche of the TLF from USD 16 million to USD 10 million, Unit 3 capex is projected to be USD5.9 million and to ensure that the previously announced termination of the Company's supply agreement with Big Rivers Electric Corporation and issues arising from a funding gap do not result in any events of default under the TLF. The key terms of the Royalty Financing are 2.0% of gross revenue from all coal leases within the Buck Creek Mining Complex for the life of the mine.

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Posted By : Yogender Pancholi on Fri, 29 Nov 2019
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