JOHANNESBURG (miningweekly.com) – Coal of Africa Limited (CoAL) has, through the placement of 49-million ordinary shares to M&G Investment Management, raised $2-million.
The company would use the funds for working capital purposes.
Application has been made for the placement shares to be admitted to trading on the Aim market of the LSE, expected to become effective on or around February 6 and will also be made for quotation on the ASX and JSE’s main board.
Following admission of the shares, CoAL will have 1.97-billion shares in issue.
CEO David Brown noted that the placement confirmed support from its large shareholders and provided CoAL with additional financial capacity. “We remain committed to creating shareholder wealth by continuing to complete our turnaround strategy, a potential acquisition of a cash generator and ultimately the development of our flagship project – the Makhado mine.”