CoAL and Investec Financial Agreement To Fund S. African Projects

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.

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