CoAL secures R210m loan
JOHANNESBURG (miningweekly.com) – Coal junior Coal of Africa Limited (CoAL) has finalised an 18-month, R210-million working capital facility from Investec Bank to fund the ongoing operating costs of the company while it awaits the sale of certain noncore assets.
These include the Woestalleen, Mooiplaats, Opgoedenhoop and Holfontein operations.
The loan will be made available in two equal tranches linked to the progress made in the disposal of the Woestalleen and Mooiplaats collieries. The first tranche of R105-million is immediately available.
CoAL expected that the proceeds from the sale of the noncore assets would be sufficient to settle the loan.
Meanwhile, the coal junior will also issue 20-million options, exercisable at R1.32 apiece before October 2018, to Investec.
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