JOHANNESBURG (miningweekly.com) – Triple-listed Coal of Africa Limited (CoAL) plans to implement Stage 3 of a capital raising process to raise gross proceeds of £38.23-million by the end of May.
Stage 3 would see CoAL issue an additional 144-million shares to raise gross proceeds of £7.92-million.
Although completion of Stage 3 of the capital raising was occurring later than originally envisaged, it was not expected to affect the financial position of the company and, on completion, would conclude the capital raising, which would see the total issuance of up to 695-million shares at an issue price of £0.055.
“The successful completion of Stage 3 of the capital raising will conclude the communicated equity fundraise and allow the company sufficient funds to focus on the development of its projects. Our shareholders continue to demonstrate their continued commitment to our strategy,” CEO David Brown said in a statement on Thursday.
Analysts at Investec commented that this was positive news for CoAL. "It last reported enough cash working capital for more than a year and now this third equity tranche provides it with more than another year of life on top of that, cementing its position as an option on an improving coal price."