Investec, the South African bank, has lent R210mn (about US$21.4mn) to Coal of Africa Limited (CoAL).

The loan is to be used to satisfy the companies working capital requirements and to support development costs of mine facilities in Woestalleen, Mooiplaats, Opgoedenhoop and Holfontein.

There are two tranches to the loan, each of which is linked to coal deposits in Woestalleen and Mooiplaats. The margin of both tranches is 500 bps.

In return for the loan and in addition to the margin, Investec has been issued 20 million share options by CoAL, exercisable at R1.32 and before October 2018.