Ichor raises Universal stake
JOHANNESBURG (miningweekly.com) – International coal company IchorCoal has increased its shareholding in South Africa-focused Universal Coal by more than 10% after converting its preferred shares into ordinary shares at a ratio of 1:1.
Ichor had converted 71.2-million noncumulative convertible preferred shares, lifting its stake in Universal from 18.51% to 29.99%.
The shareholder initially subscribed for the nonvoting, noncumulative convertible preferred shares at A$0.18 apiece in October 2014 in a A$24.5-million strategic investment deal that included the acquisition of 80.4-million ordinary shares at A$0.15 a share.
The investment enabled ASX-listed Universal to complete the financing of the acquisition of its second operating asset, the New Clydesdale colliery (NCC), from Exxaro Coal Mpumalanga; part-fund the development of the Roodekop project, which included NCC; and fund general working capital.
The company’s flagship mine, the Kangala colliery, also in Mpumalanga, was currently generating positive cash flow, while a mining right had been awarded for its third proposed operation, the nearby Brakfontein project.
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