Beijing Haohua Energy Resource subsidiary Haohua Energy International will take about a 5% interest in the South African explorer via a two-tranche share placement.

CoAL said the placement would expedite the development of the company’s projects and provide direct exposure to the world’s largest coking coal market.

HEI will also arrange further financing in the development of CoAL’s project pipeline.

“I am pleased to have had the privilege of seeking to formalize a partnership with HEI in pursuit of a company-transforming transaction through capital investment,” CoAL chairman David Brown said.

“The introduction of HEI as a cornerstone shareholder will position CoAL to unlock its intrinsic value.”