| Thu 24 Mar 2011, 9:40 | | CZA - Coal of Africa Limited - Coal Secures Us$50 Million Facility with Deutsche |
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CZA
CZA
CZA - Coal of Africa Limited - Coal Secures Us$50 Million Facility with Deutsche
Bank
Coal of Africa Limited
(previously, "GVM Metals Limited")
(Incorporated and registered in Australia)
(Registration number ABN 008 905 388)
JSE Share code: CZA
ASX Share code: CZA
ISIN AU000000CZA6
("CoAL" or the "Company")
COAL SECURES US$50 MILLION FACILITY WITH DEUTSCHE BANK
Coal of Africa Limited (`CoAL` or the `Company`) announces it has today, via its
wholly owned South African subsidiary Langcarel (Pty) Limited ("Borrower"),
secured a revolving thermal coal export finance facility ("Facility") for up to
US$50 million ("Facility Amount") with Deutsche Bank AG, Amsterdam ("Lender").
The Facility will be used to provide funds for capital expenditure and general
working capital purposes. It will also be used to repay the Company`s existing
US$20 million unsecured, revolving loan facility agreement with JP Morgan Chase,
details of which were announced on 28 April 2010, which is currently drawn down
in full.
CoAL and its subsidiaries NuCoal Mining (Pty) Limited and Woestalleen Colliery
(Proprietary) Limited will guarantee the Borrower`s obligations under the
Facility Agreement. Additional key terms of the Facility Agreement are set out
in Annexure A.
The funds available under the Facility, together with the Company`s current cash
balance of US$31 million as at 18 March 2011, provide CoAL with sufficient
working capital to execute its operational strategy. Furthermore, the Company is
benefitting from improved cash flow as a result of higher thermal coal prices
combined with the implementation of recent cost cutting measures.
JOHN WALLINGTON
Chief Executive Officer
Bryanston
24 March 2011
JSE Sponsor
Macquarie First South Advisers (Pty) Ltd
For more information contact
John Wallington Chief Executive Coal of Africa +27 11 575 7423
Officer
Blair Sergeant Finance Director Coal of Africa +61 893 226 776
Shannon Coates Company Coal of Africa +61 893 226 776
Secretary
Rob Nominated Evolution +44 20 7071 4300
Collins/Romil Adviser Securities
Patel/ Chris Sim
Melanie de JSE Sponsor Macquarie First +27 11 583 2000
Nysschen/Annerie South Advisers
Britz/Yvette
Labuschagne
Jos Simson/Emily Financial PR Tavistock +44 207 920 3150
Fenton
www.coalofafrica.com
About CoAL:
CoAL is an AIM/ASX/JSE listed coal mining and development company operating in
South Africa. CoAL`s key projects include the Woestalleen Colliery, the
Mooiplaats thermal coal mine, the Vele coking coal project and the Makhado
coking coal project.
The Mooiplaats coal mine commenced production in 2008 and is currently ramping
up to produce 2 million tonnes per annum ("Mtpa"). CoAL`s Makhado coking coal
project is expected to start production in 2013 and timing for Vele to reach
production is still to be confirmed. These operations are targeted to
collectively produce an initial 2Mtpa ramping up to a combined annual output of
10Mtpa of coking coal.
In 2010, CoAL completed the ZAR467m acquisition of NuCoal Mining (Pty) Limited
("NuCoal"), a thermal coal producer with assets in South Africa in close
proximity to CoAL`s Mooiplaats mine. NuCoal owns the Woestalleen Colliery, which
has a number of off-take contracts in place and processes approximately 2.5Mtpa
of saleable coal for domestic and export markets. NuCoal also owns two
beneficiation plants, one fully operational mine producing approximately 300kt
per month of ROM coal and has recently commenced production at a second mine.
ANNEXURE A
Tenor: Up to 30 months.
Drawdown: The Facility shall be available for drawdown, in minimum individual
amounts of US$2,500,000 or multiples thereof.
Availability Period: The Facility is available for drawdown in minimum
individual amounts of US$2,500,000 on a 7-120 days revolving basis for a period
of 30 months.
Availability in the last 12 months will be limited in accordance with the
repayment schedule (see Repayment below).
Repayment: Unless the Facility is extended or refinanced earlier at the sole
discretion of the Lender, the Facility Amount will be reduced each month by one
twelfth.
Revolving: The Facility will be available on a revolving basis during the
Availability Period.
Offtake Contracts Coverage
Ratio requirement: Borrower undertakes that throughout the lifetime of the
Facility, certain Offtake Contracts proceeds to be paid into Collection Accounts
held with the Lender in the name of Borrower, and pledged to the Lender, shall
always be equal to or greater than 130% of the amount outstanding under the
Facility.
Security: At all times the aggregate outstanding under the Facility will be
secured by the following (in all cases documents to be in form and substance
acceptable to the Lender), including but not limited to:
- A first ranking assignment by the relevant Borrower of its rights under the
Offtake Contracts (including payment instruments e.g. letters of credit), in
favour of the Lender. The Offtakers have acknowledged such assignment following
a notice given by the relevant Borrower;
- Pledge over the Collection Accounts with the Lender;
- Pledge over Customer Foreign Currency Accounts with Deutsche Bank,
Johannesburg.
Interest Rate: LIBOR plus 3% per annum
The Facility agreement contains other terms and conditions (inclusive of fees)
standard for these types of facilities.
Date: 24/03/2011 09:40:00 Produced by the JSE SENS Department.
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