The transaction included some 96 million shares representing a 30% interest in the company.

Universal said the proceeds would be directly applied to Kangala, a project which holds 19.5 million tonnes of proved reserves.

Coal resources at the site include 74.2Mt measured, 19.5Mt indicated and 33.6Mt inferred resources.

Universal says potential exists to increase the project’s resource further as the company has recently acquired prospecting rights to a 215-hectare area adjacent to the proposed mine.

Last September the company secured financing for the project with a South African bank.

Rand Merchant Bank agreed to provide 65% of project financing for Kangala, a master finance deed for future Universal projects and a transactional banking arrangement for the explorer.

Universal said its initial search for financing from South African banking institutions targeted only 50% financing for the greenfield project but it was able to secure 65% from RMB due to confidence generated by the project’s recent offtake agreement with domestic utility Eskom.