Coal producer Buffalo Coal said yesterday it has reached a final discharge of its loan facility of almost R32.6 million with Investec.
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.
The group said Investec had commenced the process to cancel the securities that covered this loan facility.
Buffalo Coal is a coal producer in South Africa. It holds a majority interest in two operating mines through its 100% interest in Buffalo Coal Dundee, a South African company that has a 70% interest in Zinoju Coal Proprietary Limited.
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. 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.
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.
BUSINESS REPORT