As such, the coal explorer and developer has extended the offer period for the proposed buy-out to 11 March 2016.
On 26 November 2015 Coal of Africa revealed that it had offered $91 million to acquire the entire issued and to be issued share capital of the South Africa-focused coal miner Universal Coal which operates the Kangala mine and is working to re-start the former Exxaro-owned mine NCC.
In December the company announced it had also secured US$3 million through a subscription agreement with M&G Investment Management for the takeover.
M&G Investment Management has agreed to subscribe for new CoAL shares at a subscription price of US$0.0435 per CoAL share.
Coal of Africa CEO David Brown believes that the combination of Universal’s producing assets and their own development portfolio, coupled with the excellent shareholder support, will ensure that the merger will create a springboard to a "new coal mining force".
Coal of Africa will pay the cash and/or issue the Consideration Shares and/or Loan Notes to which accepting Universal Shareholders are entitled within 14 calendar days of the date on which the offer becomes or is declared wholly unconditional or, in relation to valid acceptances received after this date but while the offer remains open for acceptance, within 14 calendar days of that acceptance.