Forbes secures $6m loan, announces $2m placement
JOHANNESBURG (miningweekly.com) – TSX- and JSE-listed Forbes & Manhattan Coal has entered a $6-million loan facility with Resource Capital Fund (RCF), which CEO Stephan Theron said provided the company with financial flexibility to enhance its current operations and pursue new ones.
The loan facility matures on June 30, 2016 and, subject to shareholder approval, is convertible into common shares at a price of C$0.36 a share.
Forbes also announced a nonbrokered private placement of shares at $0.36 apiece to raise $2-million. It stated that RCF would not participate in the private placement but, should shareholder approval be received, RCF would, at the same time as the closing of the private placement, convert up to $2-million of the loan into common shares at $0.36 a share.
The private placement is expected to close on September 18.
Forbes owns two coal mines in South Africa.
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