Photo by: Bloomberg
JOHANNESBURG (miningweekly.com) – Junior miner Coal of Africa Limited (CoAL) has acknowledged that a subsidiary of Beijing Haohua Energy Resource Company, which is listed on the Shanghai Stock Exchange, intends to acquire up to 215-million shares in CoAL at 5.5p a share.
The coal miner reiterated that its ability to continue as a going concern and to pay its debts as and when they were due was dependent on, besides other things, obtaining additional funding from either financial institutions or the equity markets to meet its planned commitments.
CoAL was in discussions with a number of parties, including strategic investors, regarding a possible capital-raising.
The company emphasised, however, that no binding agreements had been entered into yet.
In 2012, CoAL had agreed to a $100-million placement deal with Beijing Haohua Energy Resources subsidiary Haohua Energy International.