The company announced today that it has fulfilled conditions to the share sale agreement signed in October.

“The acquisition of NuCoal cements Coal of Africa’s position as an emerging South African coal producer, transforming the company into a multi-site producer, well placed to take advantage of the current strength in, and attractive outlook for, global coal markets,” Coal of Africa managing director Simon Farrell said in today’s statement.

Coal of Africa said a 10% retention fee and adjustments to reflect the working capital position had resulted in a final adjusted purchase price for NuCoal of R467 million.

An amount of R65 million will be withheld in relation to certain warranties and in accordance with the terms of the share sale agreement.

NuCoal is a thermal coal producer with assets in South Africa close to Coal of Africa’s Mooiplaats mine.

Azure Capital acted as corporate adviser to Coal of Africa on the acquisition of NuCoal.

The acquisition was funded by proceeds of a recent share placement that raised £57 million ($A102 million).

Coal of Africa will use the remaining proceeds of the placement to accelerate capital expenditure at its Vele coking coal project and for working capital purposes.

Shares in Coal of Africa were trading 5c lower at $A2.19.