Coal of Africa already owned 80% of Limpopo and acquired the rest of the company, and consequently the Vele project, from Tranter Holdings.
Triple-listed Coal of Africa issued 5.63 million ordinary shares to Tranter at a price of only 40 pence (GBP) each, 72% below its last trading price of £1.44 on London’s Alternative Investment Market.
In a separate scrip-based deal, Coal of Africa issued 350,000 ordinary shares at the discount price of $A2 per share to a nominee for rail and port logistics services.
The new issues increase the total shares on issue by 1.26% to 480.5 million.
Coal of Africa received the mining rights for Vele from the South African government early this month.
Located in Limpopo Province, Vele will initially target 2.5 million tonnes per annum before doubling output under a second development phase.
The company anticipates the wash plant and associated infrastructure at Vele will be commissioned by April this year.
Coal of Africa shares closed down 5c yesterday at $2.41.
