JOHANNESBURG (miningweekly.com) – Aim-, ASX- and JSE-listed coal junior Coal of Africa Limited (CoAL) on Tuesday said the deal with Beijing Haohua Energy Resource subsidiary Haohua Energy International (HEI) had been concluded.
The parties signed a cooperation agreement for the development of a strategic relationship at a signing ceremony in Johannesburg.
“The agreement serves to facilitate the formation of a long-term and mutually beneficial strategic partnership between CoAL and HEI. The vision of the cooperation is to unlock the intrinsic value inherent in CoAL's operations and projects,” said CoAL CEO John Wallington in a statement.
The agreement followed shareholder approval of a $100-million investment by the Hong Kong-based firm into the junior coal producer earlier this year, which formed the basis for the partnership.
Further, HEI agreed to “use its best endeavours” to arrange further funding in the development of CoAL's project pipeline.
The partnership would also allow CoAL to draw on the commercial, technical, financial and operational expertise within HEI.