It is the first tranche of a $100 million placement HEI made with the company on October 1.

The funds were held in escrow until HEI received the Australian Foreign Investment Review Board blessing, which came yesterday.

This will be applied toward the subscription for shares in Coal of Africa at either 25p (40c) or 35p a share to be issued three days after the earlier of the date on which certain regulatory approvals are obtained or January 31. That is unless a later date is agreed between the parties.

The transaction will give HEI a stake of between 4.8% and 5.2% in Coal of Africa.

HEI’s second subscription of $80 million is conditional upon it receiving the requisite approvals, including those from the relevant authorities in the People’s Republic of China.

It will use that to subscribe to shares at 25p a share.

Coal of Africa’s key projects include the Vele colliery which is a mix of coking and thermal coal, the Greater Soutpansberg project including its Makhado coking coal project and the thermal coal Mooiplaats and Woestalleen collieries.