By Alex MacDonald
LONDON--South Africa's Coal of Africa Ltd. (CZA.AU) said Tuesday
it has amended the payment terms of its 2010 multi-stage purchase
of coal properties from a unit of Rio Tinto PLC (RIO) and Kwezi
Mining Proprietary Ltd. in order to provide more financial
flexibility as it seeks to settle its historic obligations.
CoAL had agreed to pay $75 million to buy the Chapudi Coal
Assets that are part of the Soutpansberg coalfield in the province
of Limpopo, South Africa. To date, CoAL has paid $53 million and
still has another $22 million to pay.
The miner said it has agreed to pay the outstanding sum in
minimum monthly installments of $100,000 until the entire amount
plus interest is settled on June 15, 2017. The interest would be 4%
per year.
CoAL will have to make certain mandatory payments that are
linked to the completion of the company's third stage of its
planned equity raise as well as the completion of the sale of
Mooiplaats and other non-core asset disposals.
"This was the last of the historic liability issues and this
agreement provides certainty of outcome as well as providing CoAL
with flexibility," said David Brown, chief executive of CoAL.
CoAL's London shares were flat at 3.25 pence a share as of 0844
GMT, resulting in a market capitalization of 52 million pounds or
$72 million.
-Write to Alex MacDonald at alex.macdonald@wsj.com
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