Wescoal, the listed coal mining company involved in the mining and trading of coal has secured funding for the Elandspruit Colliery from Investec Bank.
Andre Boje, Wescoal’s CEO says “This structure will provide funding for capex and development of our flagship Elandspruit operation. Furthermore we are delighted in the confidence Investec has in our company. The decision to opt for debt as opposed to equity is so that shareholding is not diluted.”
The structure will provide Wescoal with a R180-million five-year term loan and a R20-million five-year working capital facility. R70-million will be used to retire the current Investec term facility. A working capital facility of R20-million is available for general use and R110-million will be used for the commissioning of the Elandspruit Colliery, including the acquisition of the Muhanga coal processing plant. This will ensure the mine has operational infrastructure, surface rights and production start-up costs.
“The ability to move forward with secured funding in place is significant for Wescoal. Elandspruit Colliery increases our life of mine beyond 15 years and coupled with the Muhanga coal processing plant as well as our established Trading business, Wescoal is a well-rounded coal operation,” concludes Boje.