The funds raised will complete the financing for Universal Coal’s acquisition of the New Clydesdale colliery from Exxaro Coal Mpumalanga, part-fund the development of the Roodekop project in conjunction with NCC and to fund general working capital and implement further acquisition opportunities as they arise.

Universal Coal CEO Tony Weber said: “Despite tough market conditions for coal and raising capital, IchorCoal’s investment highlights the quality and tremendous growth potential of our assets.

“We are pleased to have IchorCoal as a cornerstone investor, especially given their experience and expertise within the South African and international coal markets.”

“The investment represents another significant milestone for the Company, and comes on the back of our first operation at Kangala achieving steady-state production and generating strong positive cash-flows further augmented by starting export sales.”

Weber said Universal was now positioned to finalise the acquisition of NCC and expedite its development with Roodekop.

“Together with the Kangala operation, this investment is expected to elevate total group production and coal sales. In addition, the recent granting of the mining right on our proposed third mine at Brakfontein and excess capacity at Kangala could lead to further production growth in the near term,” Weber said.