Coal of Africa Limited Capital Raising Update (7581L)

TIDMCZA

RNS Number : 7581L

Coal of Africa Limited

30 April 2015

ANNOUNCEMENT 30 April 2015

Capital Raising Update

Further to the announcements of 26 August 2014, 25 September 2014 and 17 December 2014, in which Coal of Africa Limited ("CoAL" or the "Company") announced a capital raising of up to 695 million shares at an issue price of GBP 0.055 (the "Capital Raising") and that the second stage of the Capital Raising had been split into two parts, the Company can now confirm that Stage 3 will be implemented no later than 29 May 2015.

Stage 3 of the Capital Raising will comprise of an additional 144 million shares at the same issue price as Stages 1 and 2 of the Capital Raising, being GBP 0.055 per share, and will raise gross proceeds of GBP7.92 million. The Stage 3 shares will be fully paid ordinary shares in the capital of CoAL and, on issue, will rank equally in all respects with CoAL's existing fully paid ordinary shares. Even though completion of Stage 3 of the Capital Raising is later than originally envisaged, it will not affect the financial position of the Company and on completion, it will conclude the Capital Raising which will have raised gross proceeds of GBP38.225 million.

As the approval of CoAL's shareholders for the issue of the Stage 3 shares, obtained at the meeting on 25 September 2014, will have expired prior to their issue, CoAL intends to issue the Stage 3 shares without shareholder approval as permitted pursuant to Rule 7.1 of the ASX Listing Rules.

Details of the participants and subscriptions in the Capital Raising are set out below.

 
                                Stage 1     Stage   Stage 3 
                                                2 
-----------------------------  --------  --------  -------- 
 Haohua Energy International 
  (Hong Kong) Resource Co.       98 000    80 000    37 000 
  Limited                           000       000       000 
-----------------------------  --------  --------  -------- 
 M & G Investment Management     97 000    60 000    28 000 
  Limited                           000       000       000 
-----------------------------  --------  --------  -------- 
 Investec Asset Management       30 000    50 000 
  (Proprietary) Limited             000       000         - 
-----------------------------  --------  --------  -------- 
 TMM Holdings (Proprietary)      26 000   110 000    79 000 
  Limited                           000       000       000 
-----------------------------  --------  --------  -------- 
                                251 000   300 000   144 000 
 Total                              000       000       000 
-----------------------------  --------  --------  --------

David Brown, Chief Executive Officer of CoAL commented:

"The successful completion of Stage 3 of the Capital Raising will conclude the communicated equity fundraise and allow the Company sufficient funds to focus on the development of its projects. Our shareholders continue to demonstrate their continued commitment to our strategy."

For more information contact:

 
                   Chief Executive                              +27 10 003 
 David Brown        Officer              Coal of Africa          8000 
                   Chief Financial                              +27 10 003 
 Michael Meeser     Officer              Coal of Africa          8000 
                                                                +27 10 003 
 Celeste Harris    Investor Relations    Coal of Africa          8000 
                                         Endeavour Corporate    +61 8 9316 
 Tony Bevan        Company Secretary      Services               9100

Company advisors:

 
 Jos Simson/Emily         Financial PR                          +44 20 
  Fenton                   (United Kingdom)    Tavistock         7920 3150 
 Chris Sim/George 
  Price/Jeremy                                 Investec Bank    +44 20 
  Ellis                   Nominated Adviser     plc              7597 5970 
 Charmane Russell/Jane    Financial PR         Russell &        +27 11 
  Kamau                    (South Africa)       Associates       880 3924 
                                                                 or 
                                                                 +27 82 
                                                                 372 5816

Investec Bank Limited is the nominated JSE Sponsor

About CoAL:

CoAL is an AIM/ASX/JSE listed coal exploration, development and mining company operating in South Africa. CoAL's key projects include the Vele Colliery (coking and thermal coal), the Greater Soutpansberg Project /MbeuYashu, including CoAL's Makhado Project (coking and thermal coal).

This information is provided by RNS

The company news service from the London Stock Exchange

END

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