Coal of Africa persuades Investec to pile in

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.

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"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