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Completion of Yishun equity and loan transactions
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 21 September 2015
Completion of Yishun equity and loan transactions
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 the shareholder approved share placement to Yishun Brightrise Investment PTE Limited
(“Yishun”).
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 £9,436,663 (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 loan bears no interest and is only repayable in limited circumstances.
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 (“Makhado Project”) and for general working capital. Yishun
has expressed an intention to acquire a strategic interest in the Makhado Project and discussions between the
parties continue. The investment package being discussed includes an equity investment in the Makhado
Project; the provision of a shareholder loan on commercial terms providing the funds required for the
development of the colliery; and the award of the Makhado Project engineering, procurement and construction
(EPC) contract on commercial terms.
David Brown, Chief Executive Officer of CoAL, commented:
“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. The Company and Yishun are progressing negotiations to further their
potential investment in the project and shareholders will be updated as negotiations between the parties
advance."
For more information contact:
David Brown Chief Executive Officer Coal of Africa +27 10 003 8000
De Wet Schutte Chief Financial Officer Coal of Africa +27 10 003 8000
Celeste Riekert Investor Relations Coal of Africa +27 10 003 8000
Tony Bevan Company Secretary Endeavour Corporate Services +61 08 9316 9100
Company advisors:
Jos Simson/Emily Fenton Financial PR (United Kingdom) Tavistock +44 20 7920 3150
Matthew Armitt/Ross Allister Nominated Adviser and Broker Peel Hunt LLP +44 20 7418 8900
Charmane Russell/Jane Appiah-Yeboah Financial PR (South Africa) Russell & Associates +27 11 880 3924 or
(Kamau) +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).
AU: Coal of Africa Limited, Suite 8, 7 The Esplanade, Mount Pleasant, Perth WA 6153, Australia, Tel: +61 8 9316 9100, Fax: +61 8 9316 5475
ZA: South Block, Summercon Office Park, Cnr Rockery Lane and Sunset Avenue, Lonehill, 2191, Tel: +27 10 003 8000 Fax: +27 11 388 8333 Email: adminza@coalofafrica.com
Bernard R. Pryor – Chairman, David H. Brown – Chief Executive Officer,
Non-executive directors: Peter G. Cordin, Andrew D Mifflin, Khomotso B. Mosehla ,Thabo F Mosololi, Rudolph H. Torlage
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