Coal of Africa, the South-Africa focused but London listed coal company, has been given a big vote of confidence by fellow South African firm Investec.
The lender has agreed to provide a $50m credit facility for two years and buy shares worth a cool $8.7m. The agreement also allows for Investec to buy more shares, up to 15% of the total issued capital.
Coal of Africa's Chief Executive John Wallington said: "This debt and equity financing package signals good support for our long-term growth strategy.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"The funds will be used for expenditure on key items for the Makhado Project, additional funding for the ramp-up of production at the Vele Colliery and for general working capital purposes."
Coal of Africa was up 5.5% at 10:13.
BS
-
Christmas at Chatsworth: review of The Cavendish Hotel at BaslowMoneyWeek Travel Matthew Partridge gets into the festive spirit at The Cavendish Hotel at Baslow and the Christmas market at Chatsworth
-
Tycoon Truong My Lan on death row over world’s biggest bank fraudProperty tycoon Truong My Lan has been found guilty of a corruption scandal that dwarfs Malaysia’s 1MDB fraud and Sam Bankman-Fried’s crypto scam
