Coal of Africa in $106m raising

Perth-headquartered emerging developer Coal of Africa has announced its intention to proceed with the issue and allotment of 50.32 million conditional placing shares, the second tranche in a US$106 million capital raising.

The company, led by chief executive officer John Wallington, first announced plans to issue 130 million new shares at a price of GBP0.51 on November 3, 2011. The first tranche consisting of 79.68 million shares were issued on November 8.

The quotation of the second tranche of 50.32 million shares has been applied to the ASX.

The funds raised by the conditional placing shares will satisfy the main condition precedent for a new US$40 million working capital facility, entered into between Coal of Africa and JP Morgan Chase Bank.

Coal of Africa expects to be able to draw down on the new bank facility soon, after meeting all of the remaining conditions precedent.