Paringa Resources Ltd., which is developing a U.S. coal mine project, announced Aug. 11 that it has completed its previously announced placement of 38,200,000 shares to investors in Australia and the United States to raise gross proceeds of A$6.5 million.
The proceeds from the placement will be used to complete the Bankable Feasibility Study (BFS) for the Buck Creek No. 2 Mine in western Kentucky and provide funding for the company to commence development of the No. 2 Mine by mid-2017.
Paringa also announced the appointment of experienced U.S. coal executive Rick McCormick as a Non-Executive Director of Paringa, effective immediately. McCormick has spent the last 20 years of his career specializing in large-scale coal preparation plants and materials handling systems in the U.S., including the Illinois Basin. He has over 30 years’ of experience in coal preparation and coal preparation equipment, including operations, process and material handling design, construction, and process equipment design and application.
McCormick was previously Chief Executive Officer of DRA Taggart (the U.S. operating arm of DRA Global), a large coal mining services firm with significant experience in the Illinois Basin having conducted operational and construction activities of many coal handling and preparation plants, including those owned by Alliance Resource Partners LP. McCormick is also a consultant to Concentrate Capital Partners, the fund management and investment arm of DRA Global.
The Buck Creek Mine Complex is adjacent to Alliance’s western Kentucky operations and will be mining the WK No. 9 coal seam at both the No.2 and No. 1 mines.
McCormick said: “In my roles as CEO of DRA Taggart and Taggart Global I led a company that completed major coal projects in the United States and around the world. I have seen just about every major new coal mine in the U.S. over the last 20 years, and in my opinion, the Buck Creek Mine Complex is one of the best undeveloped coal projects in the United States. Having spent the most part of my career designing and building equipment, coal preparation plants, and materials handling systems for the U.S. coal sector, I’m delighted to be joining Paringa as we begin development of the low capex Buck Creek No.2 Mine, followed by the No.1 Mine, to ultimately become a 5.6 Mtpa producer of high quality coal in the Illinois Basin.”