Coal of Africa making good progress - CNBC Africa

Coal of Africa making good progress

Southern Africa

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CoAL completes two of three stages of equality placement program. PHOTO: bhpbilliton

The company's three stage equality placement process has raised 46 million dollars net of costs and the final stage is set to raise gross proceeds of approximately 14 million dollars.

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“The successful completion of two stages of the equity placement process at a premium to the current CoAL share price is a vote of confidence in the company’s strategy and the intrinsic value of its assets, as well as the progress made during the last 18 months,” the company said.

[DATA CZA:CoAL] chief executive officer, David Brown, added,“The third stage of the placement process is expected to be completed during April 2015, resulting in a successful capital raise in what is considered to be very tough market conditions for mining companies, especially junior mining companies."

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He also stated that the money raised will go towards settling the company’s historic obligations as well as to projects which are at different stages of exploration and development.