Australian coal miner Waterberg raises A$2.4M from equity issue to Investec

By VCPOST Staff Reporter

Mar 17, 2014 12:03 PM EDT

Waterberg Coal has gained A$2.4 million via equity issuance to UK firm Investec Asset Management, according to BD Live.

In addition, it has also entered a share exchange deal with Global Resources Investment Trust. This transaction is valued at A$4.32 million. The Australian mining firm plans to use the proceeds from this deal as a supplement to its operational budget, the report detailed.

Waterberg has a 45.9% holding in Firestone Energy. Because of this stake, it controls the Waterberg coal project adjacent to Lephalale, Limpopo. The latter is 60% owned by Firestone and 40% owned by Sekoko Coal. In addition, Waterberg also holds another 10% of the said project through Sekoko, the report detailed.

The Waterberg field is an important project to the local coal industry because of its large coal reserve. Both Waterberg-Firestone and Resource Generation are vying for the development of new coal mines in the said field, BD Live reported.

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