JOHANNESBURG (miningweekly.com) – Coal development and mining company Coal of Africa Limited (CoAL) has extended the offer period for the acquisition of Universal Coal to July 15, to enable the enlarged group to “ensure it is financially in a position to advance its combined prospects” and that CoAL’s working capital is such that its shares are readmitted to trading on the Aim.
CoAL, therefore, continues with negotiations with a number of third parties regarding potential working capital funding opportunities.
CoAL, in May, entered into two subscription agreements with Hengshun Zhongsheng Group and Summer Trees, which would subscribe for 229.89-million and 114.94-million CoAL shares respectively, for a combined $15-million.
This, along with two previous financing deals with M&G Investment Management and Haohua Energy International, would provide the $23-million in cash payable under the terms of the $91-billion acquisition of Universal Coal.
Meanwhile, CoAL on Friday reported that it had received acceptances from shareholders holding 94.25% of Universal Coal.