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COAL OF AFRICA LIMITED - Coal of Africa Limited secures funding

Release Date: 30/10/2013 09:00
Code(s): CZA     PDF:  
Wrap Text
Coal of Africa Limited secures funding

Coal of Africa Limited
(Incorporated and registered in Australia)
Registration number ABN 008 905 388
ISIN AU000000CZA6
JSE/ASX/AIM share code: CZA
("CoAL or the "Company" or the "Group")

ANNOUNCEMENT                                                                                                                                                     

30 October 2013

CoAL SECURES FUNDING

Coal of Africa Limited (CoAL) (ASX: CZA) is pleased to announce that, subsequent to the receipt of an approved term sheet as
announced on 30 August 2013, the Company has finalised an 18-month, R210 million (approximately US$21.4 million) working
capital facility from Investec Bank Limited (Investec). The facility will be used for general operating expenditure and enable CoAL
to continue to execute against the key priorities of its previously disclosed enhanced turnaround strategy.

The working capital facility will be used to fund the much reduced, on-going operating costs of the company while awaiting the
proceeds from the sale of the identified non-core assets which are Woestalleen, Mooiplaats, Opgoedenhoop and Holfontein.

The loan will be made available in two equal tranches linked to progress in the disposal of the Woestalleen and Mooiplaats
collieries. The principal terms of the loan include a margin of 500 basis points, pledge and cession of the shares and loan accounts
in the major operating subsidiaries of the group. In addition to the above CoAL will issue 20 million options to Investec which are
exercisable at R1.32 before October 2018. The first tranche of the funds are available immediately and amount to
R105million(approximately US$10.7million) It is forecast that the proceeds generated from sale of the non-core assets, once
completed will be sufficient to settle the facility.


For more information contact:
David Brown                                   Executive Chairman                                   Coal of Africa                                       +27 11 575 4363
Michael Meeser                                Chief Financial Officer                              Coal of Africa                                       +27 11 575 4363
Celeste Harris                                Investor Relations                                   Coal of Africa                                       +27 11 575 6857
Tony Bevan                                    Company Secretary                                    Endeavour Corporate Services                         +61 8 9316 9100

Company advisors:
Jos Simson/Emily Fenton                       Financial PR (United Kingdom)                        Tavistock                                            +44 20 7920 3150
Chris Sim/Jeremy Ellis                        Nominated Adviser                                    Investec Bank plc                                    +44 20 7597 5970
Charmane Russell/Jane Kamau                   Financial PR (South Africa)                          Russell & Associates                                 +27 11 880 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).




Suite 8, 7 The Esplanade, Mt Pleasant, Perth WA 6153, Australia, Tel: +61 8 9316 9100, Fax: +61 8 9315 5475, Email: perth@coalofafrica.com ACN 008 905388
ZA: 2nd Floor, Gabba Building, The Campus, 57 Sloane Street, Bryanston, Johannesburg, South Africa 2021, Tel: +27 11 575 4363, Fax: +27 11 576 4363, Email: admin@coalofafrica.com


David H.Brown – Executive Chairman, Michael G. Meeser – Chief Financial Officer
Non-executive directors: Peter G. Cordin, Khomotso B. Mosehla , David J. K. Murray, Bernard R. Pryor, Rudolph H. Torlage

Date: 30/10/2013 09:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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