Coal of Africa (CoAL) announced that all regulatory approvals required by Haohua Energy International Resource have been granted for its equity raising programme.
In addition, the company announced that sale and purchase agreement (SPA) for the sale of its Mooiplaats Colliery has been signed, following the purchaser Blackspear Capital’s agreements of terms with a financial and operational partner.
CoAL announced a conditional two-stage private placement on 26 August, which is expected to result in CoAL issuing up to 695 million additional shares at 0.055 GBP per share, raising up to $64.9 million.
CoAL will apply for the admission of the 251 000 000 ordinary shares, to be issued under the first stage of the private placement to trading on AIM, on the ASX and on the JSE, announced the company.
The Australian-listed company expected that the Stage 1 Placement Shares would be issued and admitted to trading on or around 10 November 2014.
The Stage 1 Placement Shares will be fully paid ordinary shares in the capital of CoAL and rank equally in all respects with the existing fully paid ordinary shares on issue.
Second share placement
The second stage of the equity raise of $ 41.5 million is conditional to TMM Holdings (TMM) having obtained sufficient funds to purchase its second stage placement shares.
“CoAL has confidence in the successful completion of the equity raise as well as the successful sale of Mooiplaats. These transactions will place the company in a position to conclude on all outstanding legacy issues and commence project development,” commented CoAL CEO David Brown.
Blackspear Capital’s acquisition of CoAL’s Mooiplaats Colliery is subject to the completion of the technical due diligence and final board approval which is expected by the end of November 2014, announced CoAL in a statement.
Following the receipt of the final regulatory approvals consistent with a transaction of this nature, CoAL expects financial close of the transaction by the end February 2015.
Blackspear, according to CoAL, is confident that the financial guarantees for the full purchase price will be received prior to the end of December 2014, in line with the terms of the sale and purchase agreement.