Coal of Africa CEO David Brown said with the placement completed, the company was in a “positive position”, particularly with the recent award of the Makhado New Order Mining Right and the deferred consideration agreement with Rio Tinto.
Stage 3 of the placement resulted in the issue of 144 million ordinary shares at 5.5p per share, raising £7.92 million.
The company has applied for the admission of the Stage 3 Placing Shares to trade on AIM, the ASX and the JSE.
“The Stage 3 Placement Shares will be fully paid ordinary shares in the company’s capital and will rank equally in all respects with the existing fully paid ordinary shares on issue,” Coal of Africa said.
“Following admission there will be 1,743,368,613 shares in issue.”
Coal of Africa also said that TMM (Pty) Ltd had been granted 40 million options, with an exercise price of 0.3 South African rand per share and would be exercisable for 12 months from June 1.
The company announced last month that the South African Department of Mineral Resources granted Coal of Africa a New Order Mining Right for its flagship Makhado hard coking and thermal coal project in the Limpopo Province.
The department also granted the Section 11 approval transferring the right from Coal of Africa to its 100% owned subsidiary Baobab Mining & Exploration, which will be the project development company.
Coal of Africa completed a Class II definitive feasibility study on Makhado in 2013 and anticipates developing the colliery to produce 2.3 million tonnes per annum of hard coking coal and a further 3.2Mtpa of thermal coal over a 16-year life of mine.
