Coal of Africa secures new loan facility

Perth-based coal miner Coal of Africa has secured a $US50 million thermal coal export finance facility with Amsterdam-based Deutsche Bank AG.

Coal of Africa, which secured the facility through its South African subsidiary, Langcarel, will use the funds to repay its $US20 million loan facility with US-based JP Morgan Chase and for general working capital.

"The funds available under the facility, together with the company's current cash balance of US$31 million as at 18 March 2011, provide CoAL with sufficient working capital to execute its operational strategy," the company said in a statement today.

"Furthermore, the company is benefitting from improved cash flow as a result of higher thermal coal prices combined with the implementation of recent cost cutting measures."

Coal of Africa operates four coal mines currently in production in South Africa.

At 11:16AM (WST) Coal of Africa's stock had gained 1 per cent to trade at $1.15.