Coal of Africa Limited (CoAL) has raised a total of £38.22 million in three tranches in a bid to settle its various liabilities and meet its working capital requirements.

Having successfully completed Stage 3 of its share placement scheme through the issue of 144 million ordinary shares at £0.05 per share each, the coal exploration and project development company raised a further £7.92 million.

The Stage 3 placement shares, which were admitted to trading on the AIM, ASX and JSE on June 3, 2015,  are fully paid ordinary shares in the capital of CoAL and will rank equally in all respects with the existing fully paid ordinary shares on issue.

Following admission there are 1.74 million CoAL shares in issue.

In addition, Australia-based coal miner TMM, have been granted 40 million options, with an exercise price of R0.3 per share and are exercisable for 12 months from 1 June 2015.

“This concludes the placement and puts CoAL in a positive position particularly in conjunction with the recent award of the new order mining right for the flagship Makhado hard coking and thermal coal project in Limpopo and the deferred consideration agreement with Rio Tinto,” said CoAL CEO David Brown.

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