Platts reported Coal of Africa Limited has signed a debt and equite funding financing agreement for $58.7 million with Investec Bank to fund the Makhado and Vele coking coal projects in South Africa.
As quoted in the report:
CoAL said that under the agreement it has the right to require Investec to subscribe for up to a maximum of 81 million CoAL shares in tranches over a year.
CEO of CoAL, John Wallington, commented:
Progress continues to be made at Vele with the coking coal test work and the finalization of the Phase 1 capital project to enable the achievement of the initial target of 1 million mt/year. The public participation process with the communities at Makhado has made significant progress since the formation of a community representative forum that is engaging positively with the company.