Coal of Africa Limited M&G Share Placement (6588V)

TIDMCZA

RNS Number : 6588V

Coal of Africa Limited

01 February 2017

ANNOUNCEMENT 1 February 2017

M&G Share Placement

Coal of Africa Limited ("CoAL" or the "Company"), the coal exploration and project development company operating in South Africa, and traded on the ASX, AIM and the JSE, is pleased to announce the successful completion of a share placement to M&G Investment Management Limited ("M&G").

An amount of 49,007,596 ordinary shares (the "Placement Shares") will be issued to M&G, at a price of 4.081 US cents per share, in terms of the subscription agreement entered into between the Company and M&G to raise US$2 million (the "Placement"). The subscription proceeds amount will be used for working capital purposes.

The issue of the Placement Shares does not require CoAL shareholder approval or any other consents or approval.

Application has been made for the Placement Shares to be admitted to trading on the AIM market of the London Stock Exchange ("AIM"). Admission to trading on AIM is expected to become effective on or around 6 February 2017. The Placement Shares will rank pari passu with the Company's existing ordinary shares of nil par value. Application for quotation of the Placement Shares will also be made to the Australian Securities Exchange and the Main Board of the JSE Limited.

Following admission of the Placement Shares there will be 1,976,008,924 shares on issue. This figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure Guidance and Transparency Rules.

David Brown, Chief Executive Officer of CoAL, commented:

"The M&G placement once again confirms the support from our large shareholders and provides the Company with additional financial capacity to fund our working capital requirements. We remain committed to creating shareholder wealth by continuing to complete our turnaround strategy, a potential acquisition of a cash generator and ultimately the development of our flagship project - the Makhado Mine."

For more information contact:

 
                    Chief Executive                              +27 10 003 
 David Brown         Officer              Coal of Africa          8000 
                    Chief Financial                              +27 10 003 
 De Wet Schutte      Officer              Coal of Africa          8000 
                                                                 +27 10 003 
 Celeste Riekert    Investor Relations    Coal of Africa          8000 
                                          Endeavour Corporate    [phone] 
 Tony Bevan         Company Secretary      Services               9100 
 

Company advisors:

 
 Matthew Armitt/Ross       Nominated Adviser    Peel Hunt      +44 20 
  Allister                  and Broker           LLP            7418 8900 
 Jos Simson/Emily          Financial PR                        +44 20 
  Fenton                    (United Kingdom)    Tavistock       7920 3150 
 Charmane Russell/Olwen    Financial PR         Russell &      +27 11 
  Auret                     (South Africa)       Associates     880 3924 
                                                                or 
                                                                +27 82 
                                                                372 5816 
 

Investec Bank Limited is the nominated JSE Sponsor

About CoAL:

CoAL is an AIM/ASX/JSE listed coal exploration, development and mining company operating in South Africa. CoAL's key projects include the Vele Colliery (coking and thermal coal), the Greater Soutpansberg Project /MbeuYashu, including CoAL's Makhado Project (coking and thermal coal).

This information is provided by RNS

The company news service from the London Stock Exchange

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February 01, 2017 02:00 ET (07:00 GMT)