Shareholders approved the arrangement yesterday with more than 99% of votes favoring a move by Beijing Haohua Energy Resource subsidiary Haohua Energy International Resource Co to acquire a 23% stake in the South Africa-focused miner.

Accordingly, Coal of Africa will issue of a conditional placement of $80 million at 39c per share.

The deal will make BHE the largest shareholder in Coal of Africa and is expected to ensure financial backing for the company’s various projects, including the Vele open pit and underground complex which holds a JORC coal resource of 370 million tonnes.

Coal of Africa chairman David Brown said the investment would form the basis for a strategic partnership between his company and BHE.

“This is a significant step in stabilizing the financial structure of the company and enables management to unlock the value in the coking assets in the Limpopo province of South Africa,” he said.

“Furthermore, the exchange of financial, technical and operational expertise that can be realized from this partnership is significant and company-transforming.”

Coal of Africa received an initial payment of $20 million from HEI last November.

The company’s other key projects in South Africa include the Makhado coking coal project and the thermal coal Mooiplaats and Woestalleen collieries.

Earlier this month Coal of Africa appointed Dutch energy and commodity trading company Vitol as its exclusive marketing agent for all thermal and coking coal exports.

The memorandum of understanding will cover all Coal of Africa products for eight years except coal subject to current agreements and coal from Makhado.