LONDON (Alliance News) - Coal of Africa Ltd Thursday said it will launch the third stage of its capital raising before May 29 to raise a further GBP7.9 million, bringing the total proceeds from the capital raising to over USD38.2 million.
Last year, Coal of Africa shareholders approved a two stage equity placement for the issue of up to 695 million shares for GBP0.055 per share. However, in December, the company announced that it had agreed with all participants in its equity placement to split the second stage of the placement into two parts.
The first stage saw the company issue 251.0 million shares to raise GBP13.8 million, and the first phase of the second stage was completed during December with the issue of 300 million shares at the same issue price to raise GBP16.5 million.
On Thursday, the company said stage three will be launched before the end of May instead of April as was originally targeted, with 144 million shares being issued at the same issue price of 0.055 pence per share to raise a further GBP7.9 million.
That will bring the total proceeds from all three stages of the capital raising to GBP38.2 million, said the company.
"The successful completion of stage three of the capital raising will conclude the communicated equity fundraise and allow the company sufficient funds to focus on the development of its projects. Our shareholders continue to demonstrate their continued commitment to our strategy," said Chief Executive David Brown.
Coal of Africa shares were untraded on Thursday morning, last trading at 2.63 pence per share.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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