6th Nov 2014 10:44
LONDON (Alliance News) - Coal of Africa Ltd on Thursday said the regulatory approvals allowing it to complete its fundraising plan have been granted and said the buyer of the Mooiplaats Colliery has gained the financing needed to complete the deal.
The company said Haohua Energy International (Hong Kong) Resource Co Ltd has received all regulatory approvals required for the first tranche of its USD64.9 million equity issue.
Haohua will subscribe to 251 million Coal of Africa shares at 5.5 pence per share, raising USD23.4 million.
Shares in Coal of Africa were down 2.6% on Thursday to 3.15 pence.
The second stage of the equity issue, for USD41.5 million, is conditional on TMM Holdings (Proprietary) Ltd obtaining sufficient funds to buy the shares.
Elsewhere, the company said the buyer of the Mooiplaats Colliery in South Africa, Blackspear Holdings Proprietary Ltd, has agreed terms with a financial and operational partner to fund the acquisition. Coal of Africa did not name the new partner to Blackspear.
Coal of Africa expects to complete the sale in the first quarter of 2015.
"Coal of Africa has confidence in the successful completion of the equity raise as well as the successful sale of Mooiplaats. These transactions will place the company in a position to conclude on all outstanding legacy issues and commence project development," said Chief Executive Officer David Brown.
By Sam Unsted; [email protected]; @SamUAtAlliance
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