JOHANNESBURG (miningweekly.com) – Shares in junior Miranda Minerals surged on Monday, after the JSE lifted a trading suspension and the company said it was confident it would be able to continue operations and pay its debts.

Earlier this month, the coal explorer asked the Johannesburg bourse to suspend trading in its shares, after a High Court interdicted it from moving forward with a proposed increase in authorised share capital and rights issue, pending a hearing and final adjudication of a business rescue application.

Miranda has since reached an agreement with former CEO Ron Nel, who wanted it under supervision and business rescue proceedings, and introduced Incubex as a 24% shareholder.

Incubex, which was formed through the unbundling of the mining interests of Sephaku Holdings in 2010, has purchased Global’s shareholding in Miranda, as well as Global’s short-term convertible loan facility and any liabilities and obligations attached to the loan.

Incubex also agreed to provide sufficient working capital to Miranda to enable the company to fund interim working capital requirements, expenditure items and other necessary expenses relating to its day-to-day operations, as well as to settle certain litigation matters.

For the next 12 months, Miranda’s assets would be in excess of the liabilities and the share capital and reserves, as well as working capital of the company would be adequate for ordinary business purposes, it said in a statement.

Shares in Miranda traded as high as 23c on Monday, compared with 19c a share when trading was suspended on January 12. By 12:30, Miranda traded at 23c a share.