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Coal of Africa clears loan with equity conversion

Fri, 17th Feb 2017 15:35

(ShareCast News) - Coal of Africa announced on Friday that it received notice from Yishun Brightrise Investment requesting the conversion of a $10m loan to CoAL's ordinary share capital.The AIM-traded firm had entered into a loan agreement with YBI during September 2015, pursuant to which YBI advanced an amount of $10m to the company, with the loan bearing no interest and only becoming repayable in limited circumstances.During May 2016 Coal of Africa and YBI amended the terms of the loan to specify the conditions that would trigger the repayment of the loan."The long stop date for the conditions was agreed as 31 December 2016 and if none of these trigger events occurred prior to the long stop date then the loan would become convertible to equity," the board explained in a statement."None of the trigger events have been effected and the company will now convert the loan to equity at the agreed price of $0.04081 per share."The total amount of Conversion Shares was confirmed to amount to 245,037,980, and the conversion into equity would occur in two tranches.Coal of Africa's directors have 240,042,603 shares remaining under the general placement authority according the ASX listing rules, and would be issued with immediate effect.The second tranche of 4,995,378 shares would be converted into equity once the general placement authority had been replenished by shareholders at the annual general meeting.After the issue of both tranches, YBI will have a shareholding of 428,269,241 ordinary shares equating to 19.28% shareholding of the company."The conversion of the loan to equity holds great value to CoAL," said chief executive David Brown."It removes a large potential cash outflow from the company's cash flow projections and strengthens the solvency ratio as it allows CoAL to focus its expenditure on the development of its assets instead of repaying debt."This leaves the company with only one outstanding settlement to Rio Tinto by June 2017."Brown said the outstanding balance to Rio Tinto related to the acquisition of the Greater Soutpansberg Assets in the Limpopo province and formed part of the company's long term development strategy."The conversion of the loan once again shows the strong support of CoAL's shareholders to the long term value of its assets and its commitment to their development."
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7 May 2014 09:23

DIRECTOR DEALINGS: Coal Of Africa CFO Buys 300,000 Shares

LONDON (Alliance News) - Coal of Africa Limited PLC Wednesday said Chief Financial Officer Michael Meeser bought 300,000 shares at a price of 4.53 pence per share Tuesday. Following this transaction, Meeser holds 600,000 shares, which represents 0.6% of the coal miner's share capital. Read more

30 Apr 2014 16:07

Coal Of Africa Says Asset Sales Significant In Turnaround Strategy

LONDON (Alliance News) - Coal of Africa PLC Wednesday said that the sale of its Woestalleen Complex and Opgoedenhoop assets during the quarter to end-March had been significant in its strategic turnaround strategy. Coal of Africa was granted approvals from the Department of Mineral Resource

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9 Apr 2014 09:09

Wednesday broker round-up UPDATE

Aberdeen Asset Management: RBC Capital moves target price from 485p to 495p and maintains an outperform rating. African Barrick Gold: Deutsche Bank upgrades to buy with a target price of 310p. African Minerals: Investec reduces target price from 241p to 198p and leaves its buy recommendation uncha

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1 Apr 2014 11:22

DIRECTOR DEALINGS: Coal Of Africa CEO Buys 75,000 Shares

LONDON (Alliance News) - Coal Of Africa PLC Tuesday said Chief Executive Officer David Brown bought 75,000 shares at a price of 4.44 pence per share on Monday. Following this transaction, Brown is now the owner of 325,000 shares representing 0.03% of the company's issued share capital.

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27 Mar 2014 14:36

Coal Of Africa Says Approval Granted For Opgoedenhoop Mineral Right Disposal

LONDON (Alliance News) - Coal of Africa Ltd Thursday said that approval has been granted by the Department of Minerals Resources, for the disposal of the Opgoedenhoop mineral right. Coal of Africa is a South-African based emerging developer and producer of high-quality thermal and coking co

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12 Mar 2014 14:43

DIRECTOR DEALINGS: Coal Of Africa Senior Executives Buy Shares

LONDON (Alliance News) - Coal of Africa Limited PLC Wednesday said Chief Executive David Brown bought 100,000 shares at a price of 5.41 pence per share. Following this transaction, Brown now holds 250,000 shares, which represents 0.02% stake in the firm. The company also said Chief Fi

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10 Mar 2014 09:29

Coal Of Africa Loss Narrows On Reduced Costs But Warns On Future

LONDON (Alliance News) - Coal of Africa Ltd Monday said its pretax loss narrowed significantly in its first half as the company reduced costs as part of its ongoing turnaround strategy but it warned that it must achieve certain goals to pay its debts. The thermal coal exploration and develo

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19 Feb 2014 13:28

Coal Of Africa Appoints Sedgman For Engineering Design Contract

LONDON (Alliance News) - Coal of Africa Ltd said Wednesday it has appointed Sedgman South Africa for the front-end engineering design, for its plant modification project at its Vele Colliery, in South Africa. The thermal coal exploration and development company, which has projects in South

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5 Feb 2014 11:00

Coal of Africa to sell stake in NuCoal Mining Proprietary

Coal of Africa has been granted regulatory approval for the disposal of its shares in South African business NuCoal Mining Proprietary. Coal will receive 80m South African Rand for the sale of business after getting the green light from the Department of Mineral Resources. Chief Executive David Br

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5 Feb 2014 09:03

Coal Of Africa To Sell All Shares In NuCoal Mining Proprietary Ltd

LONDON (Alliance News) - Coal of Africa Ltd Wednesday said it has been granted a Section 11 approval by South Africa's Department of Mineral resources for the disposal of all its shares and intercompany loan accounts in NuCoal Mining Proprietary Ltd. NucCoal is a coal mining company which p

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5 Feb 2014 08:12

UK MORNING BRIEFING: Insurers In Focus As Stephen Hester Joins RSA

LONDON (Alliance News) - Shares have continued their slide at the open Wednesday, despite a positive close overnight on Wall Street.

Brokers have been taking a look at UK insurers after RSA Insurance sprung a positive surprise late Tuesday by appointing turnaround a

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4 Feb 2014 10:15

Coal of Africa Makes Brown Permanent CEO, Seeks New Chairman

LONDON (Alliance News) - Coal of Africa Ltd Tuesday said it has appointed David Brown as its permanent chief executive from February 1. Brown has been acting CEO since June last year, having joined the company as non-executive chairman in August 2012. Brown's first task will be to pus

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31 Jan 2014 10:11

Coal of Africa's Production Drops As It Pushes Forward Restructuring

LONDON (Alliance News) - Coal of Africa Ltd Friday said sales dropped in the fourth quarter ended December 31, 2013, as it focused on restructuring its business. The South Africa-focused coal miner said sales of export-quality coal decreased in the final quarter of 2013 to 7,677 tonnes, fro

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31 Oct 2013 09:49

Coal Of Africa Cuts Cash Bleed As It Presses On With Turnaround

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