More than 9.3 million shares in the company changed hands, driving prices to an intraday high of 22c before closing at 21.5c.

Ikwezi was formed in May this year and acquired its projects from Belvedere Mining, which is the company’s largest shareholder with a 50.2% stake.

The company is aiming to take its 209 million tonne Newcastle thermal coal project in South AFrica into production next year.

Capital costs are expected to be $21 million and the company is in advanced talks with infrastructure and logistics providers.

Ikwezi was founded by the team behind South African company NuCoal Mining, which was sold to Coal of Africa last year.

NuCoal founder and chief executive officer Simon Hewetson chairs Ikwezi, while chartered accountant and former Minara Resources chief financial officer David Pile is managing director.

Both have a stake in Belvedere.

NuCoal deputy CEO Ranaldo Anthony is an executive director, while former Clough deputy chairman Roger Rees joined the board today as a non-executive director.