Last checked at 9 Jan 2013 09:00
ANNOUNCEMENT 9 January 2013
Beijing Haohua Energy Resources Co. confirms receipt of Chinese regulatory approval for US$100 million investment
Coal of Africa Limited ("the Company" or "CoAL") is pleased to announce that Haohua Energy International (Hong Kong) Co. Limited ("HEI"), a wholly owned subsidiary of Beijing Haohua Energy Resource Co. Limited ("BHE"), has advised the Company that it has received the requisite approvals ahead of schedule from the relevant authorities in the People's Republic of China ("PRC") to proceed with the subscription for US$100 million of CoAL shares at a price of £0.25 per share in accordance with the definitive Subscription Agreement ("Subscription Agreement").
The requisite approvals include the Beijing Municipal Commission of Development and Reform 'Approval on the transaction of BHE's share subscription from CoAL' and the National Development and Reform Commission's 'Major local overseas investments transaction approval and registration' to the Beijing Municipal Commission of Development and Reform. The approvals are valid for two years.
Under the Subscription Agreement, the Initial Placement of US$20 million has been received by the Company and the Conditional Placement of US$80 million remains subject to shareholder approval. As announced on 24 December 2012, the Notice of the Extraordinary General Meeting ("EGM") to be held on 25 January 2013, has been dispatched to shareholders to consider and approve the US$100 million investment by HEI at the EGM.
CoAL Chairman, David Brown said, "I am pleased that the remaining approvals required by HEI to complete the transaction have been received ahead of the shareholder meeting on 25 January. Upon the conclusion of this transaction, CoAL will be well placed to execute its vision for the future development of the Company."
For more information contact:
David Brown | Chairman | Coal of Africa | +27 11 575 4363 |
John Wallington | Chief Executive Officer | Coal of Africa | +27 11 575 4363 |
Sakhile Ndlovu | Investor Relations | Coal of Africa | +27 11 575 6858 |
Tony Bevan | Company Secretary | Endeavour Corporate Services | +61 08 9316 9100 |
Company advisors:
Jos Simson/Emily Fenton | Financial PR (United Kingdom) | Tavistock | +44 20 7920 3150 |
Chris Sim/Neil Elliot | Nominated Adviser | Investec Bank plc | +44 20 7597 5970 |
Charmane Russell/James Duncan | Financial PR (South Africa) | Russell & Associates | +27 11 880 3924 or +27 82 372 5816 |
Investec Bank Limited is the nominated JSE Sponsor
About CoAL:
CoAL is an AIM/ASX/JSE listed coal exploration, development and mining company operating in South Africa. CoAL's key projects include the Vele Colliery (coking and thermal coal), the Greater Soutpansberg Project, including CoAL's Makhado Project (coking coal) and the Mooiplaats and Woestalleen Collieries (both thermal coal).