Last checked at 30 Apr 2015 07:00
ANNOUNCEMENT 30 April 2015
Capital Raising Update
Further to the announcements of 26 August 2014, 25 September 2014 and 17 December 2014, in which Coal of Africa Limited ("CoAL" or the "Company") announced a capital raising of up to 695 million shares at an issue price of GBP 0.055 (the "Capital Raising") and that the second stage of the Capital Raising had been split into two parts, the Company can now confirm that Stage 3 will be implemented no later than 29 May 2015.
Stage 3 of the Capital Raising will comprise of an additional 144 million shares at the same issue price as Stages 1 and 2 of the Capital Raising, being GBP 0.055 per share, and will raise gross proceeds of £7.92 million. The Stage 3 shares will be fully paid ordinary shares in the capital of CoAL and, on issue, will rank equally in all respects with CoAL's existing fully paid ordinary shares. Even though completion of Stage 3 of the Capital Raising is later than originally envisaged, it will not affect the financial position of the Company and on completion, it will conclude the Capital Raising which will have raised gross proceeds of £38.225 million.
As the approval of CoAL's shareholders for the issue of the Stage 3 shares, obtained at the meeting on 25 September 2014, will have expired prior to their issue, CoAL intends to issue the Stage 3 shares without shareholder approval as permitted pursuant to Rule 7.1 of the ASX Listing Rules.
Details of the participants and subscriptions in the Capital Raising are set out below.
Stage 1 | Stage 2 | Stage 3 | |
Haohua Energy International (Hong Kong) Resource Co. Limited | 98 000 000 | 80 000 000 | 37 000 000 |
M & G Investment Management Limited | 97 000 000 | 60 000 000 | 28 000 000 |
Investec Asset Management (Proprietary) Limited | 30 000 000 | 50 000 000 | - |
TMM Holdings (Proprietary) Limited | 26 000 000 | 110 000 000 | 79 000 000 |
Total | 251 000 000 | 300 000 000 | 144 000 000 |
David Brown, Chief Executive Officer of CoAL commented:
"The successful completion of Stage 3 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."
For more information contact:
David Brown | Chief Executive Officer | Coal of Africa | +27 10 003 8000 |
Michael Meeser | Chief Financial Officer | Coal of Africa | +27 10 003 8000 |
Celeste Harris | Investor Relations | Coal of Africa | +27 10 003 8000 |
Tony Bevan | Company Secretary | Endeavour Corporate Services | +61 8 9316 9100 |
Company advisors:
Jos Simson/Emily Fenton | Financial PR (United Kingdom) | Tavistock | +44 20 7920 3150 |
Chris Sim/George Price/Jeremy Ellis | Nominated Adviser | Investec Bank plc | +44 20 7597 5970 |
Charmane Russell/Jane Kamau | 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 /MbeuYashu, including CoAL's Makhado Project (coking and thermal coal).