LONDON (ShareCast) - South African mining company Coal of Africa saw its shares rise after a wholly-owned subsidiary of Beijing Haohua Energy told the miner that it has received the requisite approvals ahead of schedule from the relevant Chinese authorities giving the go-ahead for the subscription for 100m dollars worth of Coal of Africa shares.
The shares are being subscribed for at a price of 25p a share, as per the agreement. The approval is valid for two years.
Coal of Africa Chairman David Brown said: "I am pleased that the remaining approvals required by [the subsidiary] HEI (Other OTC: HEII - news) to complete the transaction have been received ahead of the shareholder meeting on January 25th. Upon the conclusion of this transaction, Coal of Africa will be well placed to execute its vision for the future development of the company."
Under the subscription agreement, the initial placement of $20m has been received by the company, while the conditional placement of $80m remains subject to shareholder approval.
The share price rose 5.19% to 20.25p by 14:15 on Wednesday.