JOHANNESBURG, (CAJ News) – COAL of Africa reported it had not reached an agreement with Haohua Energy International (HEI) Resource Limited over the latter’s indication to subscribe for $5 million in the coal mining company.

The Asian company announced on the Shanghai Stock Exchange its intention to subscribe to the stake at a price of more than US$0,04 per share.

CoAL Chief Executive Officer, David Brown, said any subscription by HEI would be subject to inter alia CoAL shareholder approval and be conditional on HEI having received any necessary regulatory approvals within the People’s Republic of China and approval for the issue of the subscription shares from the Australian Foreign Investment Review Board.

“At this time, discussions remain incomplete, and no binding agreements have been entered into. The Company will provide a further update to shareholders in due course,” said Brown.

CoAL, listed on the Australian, Johannesburg and London exchanges, is development and mining company operating in South Africa. CoAL’s key projects include the Vele Colliery (coking and thermal coal), the Greater Soutpansberg Project /MbeuYashu, including CoAL’s Makhado Project (coking
and thermal coal).

– CAJ News