Coal of Africa has completed a $US44.8 million share placement to fund its acquisition of the Chapudi coal assets in Limpopo, South Africa, and also provide additional exploration and working capital.
The coal miner announced today it has placed more than 115 million new shares with institutional investors, priced at 25 pence (37 cents) per share.
Investec Bank acted as joint co-ordinators and bookrunners to the placement.
Coal of Africa said the proceeds would go towards a $14 million payment due for the company’s acquisition of the Chapudi project, plant and design fees at its Vele Colliery development, additional exploration work and general working capital.
Also today, Coal of Africa announced former Impala Platinum boss David Brown as its new chairman, and Bernard Pryor as non-executive director.
“I am looking forward to working with the management of CoAL with a view to realising the significant potential of the company,” Mr Brown said.
“CoAL has an exciting suite of coking coal assets including those in the Greater Soutpansberg Basin which has the makings to become a new world class coking and thermal coal basin.
“A key focus of our efforts will be to re-establish shareholder value and in order to facilitate this all strategic options will be assessed.
“The company is at the critical stage of moving beyond the junior mining scene and I look forward to leading all stakeholders in its next crucial stage of development.”
AT close of trade today, Coal of Africa shares were up 4.05 per cent at 38.5 cents.