Coal of Africa secures finance facility with Deutsche Bank.

By bne IntelliNews March 25, 2011
South African company Coal of Africa said it has secured a revolving thermal coal export finance facility for up to USD 50mn with Deutsche Bank AG, Amsterdam. The facility, secured via its wholly-owned South African subsidiary Langcarel, will be used to provide funds for capital expenditure and general working capital purposes, the company said in a statement. It will also be used to repay the company's existing USD 20mn unsecured, revolving loan facility agreement with JP Morgan Chase. Coal of Africa and its subsidiaries NuCoal Mining Limited and Woestalleen Colliery Limited will guarantee the borrower's obligations under the facility agreement. The funds available under the facility, together with the company's current cash balance of USD 31mn as of March 18, 2011, provide Coal of Africa with sufficient working capital to execute its operational strategy. Furthermore, the company said it is benefiting from improved cash flow as a result of higher thermal coal prices combined with the implementation of recent cost cutting measures.

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