Coal of Africa Limited Completion of Yishun equity and loan transactions (5525Z)
September 21 2015 - 2:00AM
UK Regulatory
TIDMCZA
RNS Number : 5525Z
Coal of Africa Limited
21 September 2015
ANNOUNCEMENT 21 September 2015
Completion of Yishun equity and loan transactions
Coal of Africa Limited ("CoAL" or the "Company"), the coal
exploration and project development company operating in South
Africa, and traded on the ASX, AIM and the JSE, is pleased to
announce the successful completion of the shareholder approved
share placement to Yishun Brightrise Investment PTE Limited
("Yishun").
The 183,231,261 ordinary shares were issued to Yishun, at 5.15
pence per share, in terms of the subscription agreement entered
into between the Company and Yishun in relation thereto and raised
GBP9,436,663 (US$14.5 million), including accrued interest. The
completion of the share issue satisfied the remaining conditions in
the loan agreement between Yishun and CoAL pursuant to which Yishun
has advanced a loan of US$10 million to the Company. The loan bears
no interest and is only repayable in limited circumstances.
The subscription proceeds and loan amount will be used to
finance pre-construction costs at the Company's flagship Makhado
coking and thermal coal project ("Makhado Project") and for general
working capital. Yishun has expressed an intention to acquire a
strategic interest in the Makhado Project and discussions between
the parties continue. The investment package being discussed
includes an equity investment in the Makhado Project; the provision
of a shareholder loan on commercial terms providing the funds
required for the development of the colliery; and the award of the
Makhado Project engineering, procurement and construction (EPC)
contract on commercial terms.
David Brown, Chief Executive Officer of CoAL, commented:
"The proceeds from Yishun's investment in CoAL as well as the
US$10 million loan to the Company will be used for general working
capital and to settle obligations prompted by the granting of the
Makhado Project New Order Mining Right as well as those that will
be triggered by the granting of the Integrated Water Use Licence,
expected in due course. The Company and Yishun are progressing
negotiations to further their potential investment in the project
and shareholders will be updated as negotiations between the
parties advance."
For more information contact:
Chief Executive +27 10 003
David Brown Officer Coal of Africa 8000
Chief Financial +27 10 003
De Wet Schutte Officer Coal of Africa 8000
+27 10 003
Celeste Riekert Investor Relations Coal of Africa 8000
Endeavour Corporate +61 08 9316
Tony Bevan Company Secretary Services 9100
Company advisors:
Jos Simson/Emily Financial PR +44 20
Fenton (United Kingdom) Tavistock 7920 3150
Matthew Armitt/Ross Nominated Adviser Peel Hunt +44 20
Allister and Broker LLP 7418 8900
Charmane Russell/Jane Financial PR Russell & +27 11
Appiah-Yeboah (South Africa) Associates 880 3924
(Kamau) 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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