Coal of Africa Limited YBI Loan Conversion to Equity (1345X)
17 February 2017 - 6:00PM
UK Regulatory
TIDMCZA
RNS Number : 1345X
Coal of Africa Limited
17 February 2017
ANNOUNCEMENT 17 February 2017
YBI LOAN CONVERSION TO EQUITY
Coal of Africa Limited ("CoAL" or "the Company") is pleased to
announce that the Company has received notice from Yishun
Brightrise Investment Pte Limited ("YBI") requesting the conversion
of a US$10 million loan to CoAL's ordinary share capital (the
"Conversion" and the "Conversion Shares").
During September 2015 the Company entered into a loan agreement
("Loan") with YBI pursuant to which YBI advanced an amount of US$10
million to the Company. The Loan bore no interest and only became
repayable in limited circumstances.
During May 2016 the Company and YBI amended the terms of the
Loan to specify the conditions that would trigger the repayment of
the Loan. The long stop date for the conditions was agreed as 31
December 2016 and if none of these trigger events occurred prior to
the long stop date then the Loan would become convertible to
equity. None of the trigger events have been effected and the
Company will now convert the Loan to equity at the agreed price of
US$0.04081 per share.
The total amount of Conversion Shares will amount to 245,037,980
and the conversion into equity will occur in two tranches. The
Company directors have 240,042,603 shares remaining under the
general placement authority according the ASX Listing rule 7.1 and
will be issued with immediate effect. The second tranche of
4,995,378 shares will be converted into equity once the general
placement authority has been replenished by shareholders at the
Annual General Meeting ("AGM"). Post the issue of both tranches of
the Conversion Shares YBI will have a shareholding of 428,269,241
ordinary shares equating to 19.28% shareholding of the Company.
Application has been made for the first tranche of 240,042,603
Conversion Shares to be admitted to trading on the AIM market of
the London Stock Exchange ("AIM"). Admission to trading on AIM is
expected to become effective on or around 21 February 2017. The
Conversion Shares will rank pari passu with the Company's existing
ordinary shares of nil par value. Application for quotation of the
Conversion Shares will also be made to the Australian Securities
Exchange and the Main Board of the JSE Limited.
Following admission of the first tranche Conversion Shares there
will be 2,216,051,527 shares in issue. This figure may be used by
shareholders in the Company as the denominator for the calculations
by which they will determine if they are required to notify their
interest in, or a change in their interest in, the share capital of
the Company under the FCA's Disclosure Guidance and Transparency
Rules.
David Brown, Chief Executive Officer of CoAL, commented:
"The Conversion of the Loan to equity holds great value to CoAL.
It removes a large potential cash outflow from the Company's cash
flow projections and strengthens the solvency ratio as it allows
CoAL to focus its expenditure on the development of its assets
instead of repaying debt. This leaves the Company with only one
outstanding settlement to Rio Tinto by June 2017. The outstanding
balance to Rio Tinto relates to the acquisition of the Greater
Soutpansberg Assets in the Limpopo province and forms part of the
Company's long term development strategy. The Conversion of the
Loan once again shows the strong support of CoAL's shareholders to
the long term value of its assets and its commitment to their
development."
For more information contact:
Chief Executive +27 10 003
David Brown Officer Coal of Africa 8000
Chief Financial +27 10 003
De Wet Schutte Officer Coal of Africa 8000
+27 10 003
Celeste Riekert Investor Relations Coal of Africa 8000
Endeavour Corporate +61 08 9316
Tony Bevan Company Secretary Services 9100
Company advisors:
Jos Simson/Emily Financial PR +44 20
Fenton (United Kingdom) Tavistock 7920 3150
Matthew Armitt/Ross Nominated Adviser Peel Hunt +44 20
Allister and Broker LLP 7418 8900
Charmane Russell/Olwen Financial PR Russell & +27 11
Auret (South Africa) Associates 880 3924
or
+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).
This information is provided by RNS
The company news service from the London Stock Exchange
END
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