CoAL raises another £7.92m

3rd June 2015 By: Megan van Wyngaardt - Creamer Media Contributing Editor Online

JOHANNESBURG (miningweekly.com) – Embattled Coal of Africa Limited (CoAL) has completed the third stage of its share placement scheme, which raised £38.22-million across the three stages.

The South Africa-focused coal exploration and project development company said on Wednesday that the third tranche placement resulted in the issue of 144-million ordinary shares at 5.5p a share, raising £7.92-million.

CoAL would apply for the admission of the Stage 3 placing shares to trade on the Aim, the ASX and the JSE. Admission was expected to occur on or around June 3.

The shares would be fully paid ordinary shares in the capital of CoAL and would rank equally with the existing fully paid ordinary shares on issue.

Following admission, there would be 1.74-billion CoAL shares in issue.

In addition, Australian coal miner TMM was granted 40-million options, with an exercise price of 0.3c a share and exercisable for one year from June 1.

“This concludes the placement and puts CoAL in a positive position particularly in conjunction with the recent award of the Makhado new-order mining right and the deferred consideration agreement with Rio Tinto,” CoAL CEO David Brown said.