11th Jan 2016 08:34
LONDON (Alliance News) - Coal of Africa Ltd on Monday noted a recent announcement made by its largest shareholder about a potential investment in the company.
Coal of Africa shares were untraded early Monday at 2.26 pence.
The South Africa-based miner said Haohua Energy International (Hong Kong) Resource Co Ltd has released a statement confirming its intention to invest USD5.0 million into the company at a subscription price of USD0.0435 per share. However, Coal of Africa said a string of approvals will need to be secured before any such deal could be completed.
"Any subscription by Haohua Energy would be subject to inter alia Coal of Africa shareholder approval and be conditional on Haohua Energy having received any necessary regulatory approvals within the People's Republic of China and approval for the issue of the subscription shares from the Australian Foreign Investment Review Board. At this time, discussions remain incomplete, and no binding agreements have been entered into," said Coal of Africa.
Haohua Energy is the largest shareholder in Coal of Africa, holding a 24% stake in the company as of November, according to Coal of Africa's website.
Haohua Energy invested heavily in the miner back in 2012, ploughing USD100.0 million into the company and upped its stake in 2014 after investing another USD23.4 million and made further investments in 2015.
By Joshua Warner; [email protected]; @JoshAlliance
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