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CoAL secures funding for Universal deal

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World Coal,

Coal of Africa (CoAL) has secured funding for its proposed takeover of Universal Coal through a subscription agreement with M&G Investment Management.

Under the agreement M&G has agreed to subscribe for new CoAL shares for an aggregate subscription amount of US$3 million at a price of US$0.0435 per share. The M&G funding is the final element of the financing required by CoAL for the Universal acquisition.

Shareholder agreement for the M&G agreement will be sought at the general meeting convened to approve the Universal deal.

Last month, CoAL agreed to buy Universal Coal for US$91 million. Universal Coal is a South African coal company that producers 2.4 million tpy with a pipeline of near term production, including 2 million tpy coming online in 2016.

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