Perth-based The Waterberg Coal Company (WCC) has agreed to a share swap deal with London-listed investment fund Global Resource Investment Trust (GRIT).
WCC said it would exchange 20 million new shares, at a price of approximately 22 cents per share, in return for 2.3 million ordinary shares in GRIT at a price of £1 per share – the equivalent of about $4.3 million.
GRIT, which listed on the London Stock Exchange earlier this month, was set up to primarily invest in small to medium-sized companies in the natural resources sector.
The fund comprises about 40 companies, mainly from North America, Australia, Russia and Kyrgystan, gained through direct investments and share swaps similar to the agreement with WCC.
WCC, which is developing its Waterberg coal project in South Africa, said it would “seek to realise its investment in GRIT to generate additional working capital”.
In addition to the share swap announcement, WCC said it had raised approximately $2.4 million after placing 13.6 million shares to Investec Asset Management at a price of ZAR1.78 per share, about 18 cents per share.
Meanwhile, WCC announced the resignation of chairman and director Brian McMaster.
Mr McMaster, who joined WCC in April 2012, has two decades of experience in corporate finance and specialises in corporate restructures.
WCC said Mathews Phosa had been named as Mr McMaster’s successor.
Mr Phosa is a lawyer by profession and prominent South African businessman with ties to the governing ANC political party.
WCC said Scott Funston had also resigned as a director of the company.
