29th Apr 2016 10:36
LONDON (Alliance News) - Coal of Africa Ltd Friday said it made significant progress regarding its offer for Universal Coal PLC in the first quarter of 2016, as Qingdao Hengshun Zhongsheng Group Co Ltd undertakes due diligence for a potential investment in its subsidiary Baobab Mining and Exploration Pty.
Coal of Africa said that, as of last Friday, it had received acceptances from Universal Coal shareholders representing around 93.2% of its issued share capital. The closing date for this offer is expected to be May 20.
Elsewhere, Coal of Africa is assisting Hengshun with its due diligence over a potential investment in Baobab. Baobab is the legal owner of the mining right for its Makhado project in South Africa.
The company said its Integrated Water Use Licence for the Makhado project has been suspended following an appeal to the Department of Water and Sanitation; Coal of Africa is preparing an "urgent representation" to the Minister of Water and Sanitation to request this licence remain in full force and effect pending the final conclusion of the appeal.
Shares in Coal of Africa were untraded Friday morning. They last traded at 2.27 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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