CoAL to convert $10m YBI loan to equity
JOHANNESBURG (miningweekly.com) – Yishun Brightrise Investment (YBI) will soon hold 19.28% of Coal of Africa Limited’s (CoAL’s) share capital, following the conversion of a $10-million loan repayment into equity.
CoAL in September 2015 entered into a loan agreement with YBI for $10-million.
In May 2016, CoAL and YBI amended the terms of the loan to specify the conditions that would trigger the repayment of the loan. The parties had agreed that if none of the agreed conditions were triggered by the long-stop date of December 31, 2016, the loan amount would be converted into equity at a price of $0.04081 a share.
The conversion shares will amount to 245.4-million and the conversion into equity will occur in two tranches.
Once complete, YBI will hold 428.3-million ordinary shares in CoAL, equating to a 19.28% shareholding.
“The conversion of the loan to equity holds great value to CoAL. It removes a large potential cash outflow from the company's cash flow projections and strengthens the solvency ratio, as it allows CoAL to focus its expenditure on the development of its assets instead of repaying debt,” CoAL CEO David Brown said.
CoAL will be left with only one outstanding settlement due to Rio Tinto by June in relation to CoAL’s acquisition of the Greater Soutpansberg assets, in Limpopo.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation