The Australian Securities Exchange-listed junior has now started formal debt financing discussions to fund building and pre-development of its Buck Creek No 1 mine.

The placement of 15 million shares at 34c each was not only underpinned by US institutional support, it was also heavily oversubscribed for by Australian and New Zealand institutional and sophisticated investors.

Paringa director Todd Hannigan and alternate director Thomas Todd will also participate in the placement by subscribing for 750,000 shares each.

The company said the proceeds from the placement would be used to strengthen its balance sheet, as it commences formal debt financing discussions to enable construction of Buck Creek No 1, and would provide sufficient funding for its planned pre-development activities.

Paringa president and CEO David Gay said the company had a busy year ahead, and securing the US institutional support was a “very positive step”, which underlined Buck Creek No.1’s scale and potential to become one of the next strategic sources of premium coal in the US.

“It’s also pleasing to see my fellow directors participating in the placement, which further reinforces the quality of the Buck Creek No.1 mine,” he said.