Abstract: Wood chips used in making composition board are coated with a resinous liquid binder by first applying a coating of the resinous liquid to the inner surface of a moving wall portion of an enclosure for the chips and then moving the coated wall beneath the chips while simultaneously wiping the chips across the coated wall surface to remove resin from the surface and coat the chips. In an illustrated embodiment, the enclosure is a revolving drum with stationary end walls. Uncoated chips are fed into the drum through one end wall while coated chips are discharged through the opposite end wall. The interior of the drum is partitioned into a resin-applying compartment and a chip compartment. A spray applicator in the former applies resin to the inner surface of the revolving drum upstream of the chips while rapidly rotating paddles within the chip compartment move the particles into contact with the resin-coated inner surface of the drum.