Coal of Africa shares surge on funding news

5th Aug 2015 09:53

(ShareCast News) - Shares in Coal of Africa were up 5.54% after the Australian based miner signed a funding deal with a Singaporean private investment company.At 0900 BST shares in the AIM listed stock rose to 4.54p after the company secured two tranches of funding worth £12.4m.Under the arrangement, Yishun Brightrise Investment said it would buy about 9.5% shares in Coal of Africa to the value of £9.4m.The purchase price of about 183m shares was to be 5.15p, the average weighted price of Coal of Africa shares in the 30 days up to 17 July 2015.Yishun has also agreed to an interest free loan of about £6.4m which may not have to be paid back, subject to number of conditions such as the share deal closing.Coal of Africa chief executive David Brown said the deal was a significant step forward to securing a strategic partner for its flagship Makhado hard coking and thermal coal project."The company looks forward to progressing negotiations with Yishun or its related parties in order to further their potential investment in the project," he said.