[miningmx.com] – THE third $14m stage of a $70m recapitalisation of Johannesburg- and Sydney-listed Coal of Africa would be completed in April with some of the funds to be use to settle “historic obligations”, said CEO David Brown.
Commenting in the firm’s December quarter operating figures, Brown said the equity placement, by China’s government-owned Bejing Haohua Energy, was “a vote of confidence in the company’s strategy”.
This has involved a multi-pronged approach of right-sizing its Vele colliery, selling its mature Mpumalanga province assets, and building up confidence in the Makhado coking coal prospect. Brown has also removed a number of legacy issues, including legal disputes and settlement of a transaction with Rio Tinto.
“The third stage of the placement process is expected to be completed during April 2015, resulting in a successful capital raise in what are considered to be very tough market conditions for mining companies, especially junior mining companies,” he said.
