LONDON (Alliance News) - Coal of Africa Ltd Thursday said it is seeing significant progress on the disposal of its Mooiplaats colliery, which was put on care and maintenance during September last year.
The mining company said the Mooiplaats colliery disposal process continued during the three months ended June 30, and the company is awaiting signed offers and proof of funding from prospective purchasers with a view to completing a transaction during the second half.
The disposal is part of the company's ongoing five-point strategy, which involves selling its non-core assets, resolving its ongoing arbitration, finalising outstanding liabilities, and getting funding for its Vele colliery plant in South Africa.
The company said the Vele colliery did not produce or process coal during the period as it awaits major modifications.
Coal of Africa said construction of plant modification is expected to start in the fourth quarter and to be completed by the end of 2015, with production ramp-up planned to be complete in early 2016.
The company added that talks with potential customers from the Vele colliery continued during the quarter, and it expects to convert these into formal off-take agreements during the second half.
Coal of Africa had USD2 million in cash available at the end of the quarter and restricted cash balances at USD6.7 million.
Coal of Africa shares were up 1.6% to 3.15 pence on Thursday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
Copyright 2014 Alliance News Limited. All Rights Reserved.
