(Ecofin Agency) - Coal of Africa Ltd (CoAL), a firm with a significant portfolio in South Africa’s coal industry, had the value of its shares soar on Tuesday 31 May 2016 on the London and Johannesburg stock markets. This follows an announcement regarding the signing of two subscription contracts for $15 million. CoAL’s share increased by 9.21% on JSE, and by 4.76% on the London stock market.

Regarding details of the two agreements, Hengshun Zhongsheng Group subscribed for 229.9 million shares and Summer Trees for 114.9 million shares, at $0.0435 per share.

CoAL said it postponed the closing for the purchase of ASX-listed Universal Coal, until subscription deals are sealed.

CoAL operates in South Africa, on the Vele Colliery and Makhado projects. Works at the Makhado project should take 26 months, with an additional four months to start production. This project should produce 5.5 million tons of coal per year.

Louis-Nino Kansoun