CoAL gains 12.5% on Mooiplaats sale

[] – COAL of Africa, the Johannesburg-listed coal development firm, gained 12.5% yesterday after announcing it would bag R250m for selling its mothballed Mooiplaats colliery in South Africa’s Mpumalanga province.

The company, which is developing coking coal assets in the country’s Limpopo province, said it would use the funds, combined with funds from a $64.9m share placement, to clean up the balance sheet, settle outstanding contracts, and continue developing its Vele coking and thermal coal mine.