The 183 231 261 ordinary shares were issued to Yishun, at 5,15 pence per share, in terms of the subscription agreement entered into between the Company and Yishun in relation thereto and raised £9,43 million (US$14,5 million), including accrued interest.

 

The completion of the share issue satisfied the remaining conditions in the loan agreement between Yishun and CoAL pursuant to which Yishun has advanced a loan of US$10 million to the company.

 

The subscription proceeds and loan amount will be used to finance pre-construction costs at the company's flagship Makhado coking and thermal coal project and for general working capital.

 

"The proceeds from Yishun's investment in CoAL as well as the US$10 million loan to the Company will be used for general working capital and to settle obligations prompted by the granting of the Makhado Project New Order Mining Right as well as those that will be triggered by the granting of the Integrated Water Use Licence, expected in due course," David Brown, Chief Executive Officer of CoAL, commented.

Source : allafrica.com