Paringa lines up $20 million project loan facility with Macquarie

By Susanna Moon

Chicago, April 5 – Paringa Resources Ltd. obtained commitments for a $20 million project loan facility from Macquarie Bank Ltd.

Interest on the loan will be Libor plus a spread of 1,050 basis points during construction, falling to 950 bps for the remainder of the loan.

The $20 million loan will be used to develop the company’s Poplar Grove Mine.

Macquarie will also provide a $1.7 million letter-of-credit facility to allow Paringa to collateralize environmental and other bonding obligations required for the construction and operation of the Poplar Grove mine, according to a company announcement.

The facility can be repaid at the end of any quarterly interest period, throughout the term of the loan, without penalty.

As payment for the provision of this underwritten offer, Paringa will issue Macquarie 4.4 million four-year options with an exercise price of A$0.66, which is a 20% premium to the 30-day volume-weighted average share price of Paringa. Paringa will issue another 4.4 million options on the same terms upon drawdown.

The project loan is expected to be drawn in 2018, only after incurring the project equity requirement in developing Poplar Grove, the company added.

Paringa is an exploration and development company based in West Perth, Australia that mines for gold, graphite, coal and other strategic minerals.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.