| Thu 17 Apr 2008, 14:14 | | CZA - CoAL`s response to the ASX regarding the cha |
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CZA
CZA
CZA - CoAL`s response to the ASX regarding the change in the price of
the Company`s securities
Coal of Africa Limited
(previously, "GVM Metals Limited")
(Incorporated and registered in Australia)
(Registration number ABN 008 905 388)
Share code on the JSE Limited: CZA
ISIN AU000000CZA6
Share code on the Australian Stock Exchange Limited: CZA
ISIN AU000000CZA6
(`CoAL` or `the Company`)
CoAL`S RESPONSE TO THE AUSTRALIAN STOCK EXCHANGE REGARDING THE CHANGE IN THE
PRICE OF THE COMPANY`S SECURITIES
17 April 2008
Ms Jill Hewitt
Issuers Adviser (Perth)
Australian Securities Exchange
Level 8, Exchange Plaza
2 The Esplanade
PERTH WA 6000
Dear Ms Hewitt
We refer to your letter dated 17 April 2008, regarding the change in the price
of the Company`s securities from $2.22 on 14 April 2008 to an intra day high of
$2.85 today.
In response to your questions outlined in that letter, we provide the following
information:
1. Subject to the comments below, the Company is not aware of any information
concerning it that has not already been announced which, if known, could be
an explanation for recent trading in the securities of the Company;
2. The Company notes the following:
a. Recent coking coal contract negotiations having been completed at
around US$300 per tonne, representing more than a 200% increase on
last years contract price in addition to recent thermal coal contract
prices concluded in excess of US$135 per tonne;
b. It has been made aware of market speculation regarding certain
organisations that may be seeking to acquire the Company`s securities.
However, the Company has not been made aware of any of those
organisations having acquired any such securities and we note that
there have been no substantial shareholder notices lodged with the
Company;
c. The Company can confirm that it is currently in confidential and
incomplete negotiations with various organisations regarding a number
of different issues, including potentially taking an equity position
in the Company, however, those negotiations have not been, and may not
be, concluded. The Company will make a relevant announcement to ASX
if and when those negotiations are completed.
3. Other than the matters described above, the Company is not aware of any
additional information and is therefore unable to provide an explanation
for the increase in price of the Company`s securities as referred to above;
and
4. The Company can confirm that it is in compliance with the Listing Rules, in
particular, Listing Rule 3.1
Please do not hesitate to contact us if further information is required.
Yours sincerely
Shannon Coates
Company Secretary
Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd
Date: 17/04/2008 14:14:52 Produced by the JSE SENS Department.
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