Oct 18 (Reuters) - Paringa Resources Ltd PNL.AX :
* Paringa contracts future coal sales totaling US$220 million
* Executed its "cornerstone" coal sales agreement with LG&E and KU
* Says coal sales agreement is for the buck creek no.1 mine's 11,200 btu/lb coal specification
* Says the coal sales agreement requires Paringa to meet certain construction milestones in developing the buck creek no.1 mine
* Paringa is expected to begin production at the buck creek no.1 mine in 2018
* Coal sales agreement is 7-year contract covering an initial 2-year construction period and a 5-year production period
* Contracted fixed coal sales prices for paringa's coal spec begins at US$44.50 per ton in 2018, escalating to US$48.20 per ton in 2022
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