JOHANNESBURG (miningweekly.com) – Triple-listed Coal of Africa Limited (CoAL) has completed a 183-million share placement to Yishun Brightrise Investment, at 5.15p apiece, raising £9.4-million.
This satisfied the remaining conditions in the loan agreement between Yishun and CoAL pursuant to which Yishun had advanced a loan of $10-million to CoAL.
The subscription proceeds and loan amount would be used to finance preconstruction costs at CoAL’s flagship Makhado coking and thermal coal project, in Limpopo, as well as for general working capital.
Yishun also expressed an intention to acquire a strategic interest in the Makhado project and discussions between the parties would continue.
This included 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 Makhado’s engineering, procurement and construction contract on commercial terms.
“The proceeds will also be used to settle obligations prompted by the granting of the Makhado project’s 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,” CoAL CEO David Brown said.