Coal of Africa Limited (CoAL) has secured a US$ 21.4 million fund from investment firm Investec Bank Limited to help the company in its strategy to focus on its coking coal assets.
The 18-month working capital will be used for general operating expenditure and will enable CoAL to continue to execute against the key priorities of its new transformation strategy.
The loan will be used to fund ongoing operating costs at identified non-core assets Woestalleen, Mooiplaats, Opgoedenhoop and Holfontein, while CoAL awaits the proceeds from the sale of these collieries.
The company added that the first 50% tranche of the two-part loan would be available immediately.
"It is forecast that the proceeds generated from sale of the non-core assets, once completed will be sufficient to settle the facility," CoAL said.
Adapted from press release by Katie Woodward