Buffalo Coal has confirmed the repayment of its final loan facility of close to R32.6 million with a business banker, Investec.
According to the coal producer, it announced on Monday that the final discharge of its loan facility was paid to the Sandton-based banking institution.
In a statement, the JSE and Toronto Stock Exchange (TSX) said the listed company had settled the outstanding loan facility of R32 576 523, including interest along with a reduced royalty amount agreed to with Investec of R2 500 000.
“On January 13, 2023, Investec issued a final discharge notice confirming that all the indebtedness and obligations of the company under the loan facility agreement have been irrevocably and unconditionally finally paid and discharged in full on January 12, 2023,” it said per IOL.
The mining group said Investec had commenced the process to cancel the securities that covered this loan facility and as a South African coal producer, it holds a majority interest in two operating mines.
In one of the mines, Buffalo Coal holds a 100% interest in Buffalo Coal Dundee, a South African company that has a 70% interest in Zinoju Coal Proprietary Limited.
Furthermore, Zinoju holds a 100% interest in the Magdalena bituminous mine, the Aviemore East anthracite mine, and the Balgray and North Adit anthracite projects in South Africa.
BusinessTech Africa understands that Buffalo Coal has an experienced coal-focused board and management team.
“The company has its primary listing on the TSX Venture Exchange and has a secondary listing on the alternative exchange, operated by the JSE,” reports IOL.
“In November, Buffalo Coal announced that it would offer rights to South African and Canadian holders of its common shares on a one-for-one basis.
“The company, which had 421.35 million common shares in issue at the time, said it intended to use the proceeds to settle a debt owed to Investec Bank, as well as for general working capital purposes and rights offer costs.”
