JOHANNESBURG (miningweekly.com) – Emerging coal-miner Coal of Africa Limited (CoAL) has secured a revolving thermal coal export finance facility for $50-million with Deutsche Bank through its wholly-owned South African subsidiary Langcarel.
The ASX-, JSE-, and Aim-listed company would use the $50-million for capital expenditure and general working capital purposes, as well as to repay a $20-million loan from JP Morgan Chase, which is due on Thursday.
Shares in CoAL traded more than 7% higher on the JSE on Thursday at R8,75 a share.
The funds available under the facility, together with CoAL’s current cash balance of $31-million, provided the company with sufficient working capital to execute its operational strategy, the John Wallington-led miner stated.
CoAL was also benefitting from improved cash flow as a result of higher thermal coal prices, combined with the implementation of recent cost cutting measures.
CoAL is producing coal from its Mooiplaats and Woestalleen mines, while its Vele operation has been shut since August pending a resolution on environmental compliance.
The miner is also developing the Makhado project, which Wallington describes as a “fantastic” coking coal asset.
The company said last week it was looking to dispose of assets worth some $30-million, with the Holfontein mine and its noncore NiMag investment on the chopping block.