CoAL $100m rights issue appoved

031110 A new study has found that SA coal reserves have been significantly downsized since 2003.photo by Simphiwe Mbokazi 453

031110 A new study has found that SA coal reserves have been significantly downsized since 2003.photo by Simphiwe Mbokazi 453

Published Jan 25, 2013

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Johannesburg - Coal of Africa (CoAL‚ CZA) announced that shareholders‚ at an extraordinary general meeting held on Friday‚ voted in favour of the $100 million investment by Haohua Energy International.

Haohua is a wholly-owned subsidiary of Hong Kong listed Beijing Haohua Energy Resources.

CoAL has already raised $20m from the required amount‚ and the vote of confidence by shareholders paves the way for the company to secure the remaining $80m by issuing its own shares at 25 pence a share.

“This is a significant step in stabilising the financial structure of the Company and enables management to unlock the value in the coking assets in the Limpopo Province of South Africa‚” David Brown‚ chairman of CoAL said. - I-Net Bridge

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