Paringa to raise $5.6m

WA-based Paringa Resources has announced plans to recapitalise the company through a $5.6 million raising, as the former coal business seeks reinstatement on the ASX as a gold explorer.

Ian Middlemas-chaired Paringa will seek approval for a 20-for-1 consolidation of its shares and change its name to GCX Metals.

It will issue 40 million shares through a share placement at 5 cents a share, on a post-consolidation basis, and issue a further 71.6 million shares through an entitlement offer, raising a total of up to $5.58 million.

The company has signed a deed of release with its secured lenders, Tribeca Global Natural Resources, which will be issued 35 million shares and 20 million options, exercisable at a price of 7 cents each.

Tribeca will also appoint two non-executive directors to Paringa’s board, Ben Cleary and Haydn Smith.

Paringa is set to acquire an 80 per cent interest in exploration licence E08/3197 for a consideration of $150,000 in cash and up to 15 million shares.

This tenement is situated adjacent to Paringa’s existing Onslow gold-copper project, for which Paringa was granted an exploration licence in July this year.

Following the completion of the acquisition, the vendor of the E08/3197 license Ryan de Franck will be appointed to the board as non-executive director.

Trade in Paringa’s shares has been suspended since December 2019.