Paringa Continues Halt of Stock Trading for Review of Western Kentucky Coal Mine Finances
An Australian company operating a new coal mine in western Kentucky is requesting an extended suspension on the trading of its stock.
The company has been having financial and operating issues at the Buck Creek Mining Complex in McLean County.
The owner of the mine, Paringa Resources, made a request to the Australian Securities Exchange to keep the stock off the market until Feb. 25.
Paringa previously suspended trading of its securities until Jan. 28 to give it time for discussion with the company’s lenders.
The Kentucky mine is operated by Hartshorne Mining Group, a wholly-owned subsidiary of Paringa.
Hartshorne defaulted on its $1.5 million loan payment due at the end of December to Tribeca Global Resources.
In its fourth quarter report for 2019, Paringa reported coal production in one part of the Kentucky mine was reduced because of “less than favorable roof conditions.” The report said “haulage was affected due to saturated floor conditions as a result of water coming from the sandstone roof.
Paringa also reported in December that its Poplar Grove Mine encountered a geological fault that had not been identified by consultants who prepared the original plan. That fault required the coal company to cut through rock, substantially reducing production and negatively impacting revenues.
Paringa Resources is headquartered in Perth, Western Australia.