CZA

TIDMCZA 
 
RNS Number : 1013G 
Coal of Africa Limited 
26 January 2010 
 
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ANNOUNCEMENT26 JANUARY 2010 
COMPLETION OF NUCOAL ACQUISITION 
Further to its announcement of 29 October 2009, Coal of Africa Limited ("CoAL" 
or "the Company") is pleased to confirm the completion of the acquisition of 
NuCoal Mining (Pty) Limited ("NuCoal"), following fulfillment of the suspensive 
conditions to the Share Sale Agreement ("SSA") signed on 29 October 2009. After 
adjusting for a 10% retention  and adjustments to reflect the working capital 
position (including certain non-current liabilities) as at 31 December 2009, the 
final adjusted purchase price due to NuCoal is ZAR467m.  The R65m retention will 
be withheld in relation to certain warranties and in accordance with the terms 
of the Share Sale Agreement. 
In accordance with the terms of the SSA, CoAL's economic interest in NuCoal 
commenced on 1 January 2010. 
Commenting on the transaction, CoAL's Managing Director Simon Farrell said: 
"The acquisition of NuCoal cements CoAL's position as an emerging South African 
coal producer, transforming the Company into a multi-site producer, well placed 
to take advantage of the current strength in, and attractive outlook for, global 
coal markets" 
NuCoal is a thermal coal producer with assets in South Africa in close proximity 
to CoAL's Mooiplaats mine. NuCoal's Woestalleen Colliery, which produces 2.5Mtpa 
of saleable coal for domestic and export markets, has a number of off-take 
contracts in place. NuCoal has two beneficiation plants, one fully operational 
mine producing 350kt per month of run of mine ("ROM") coal and has recently 
commenced production at a second mine. In addition, NuCoal has a number of other 
development projects which CoAL will evaluate in the context of the Company's 
overall corporate strategy. 
Azure Capital acted as Corporate Adviser to CoAL on the acquisition of NuCoal. 
The acquisition was funded by proceeds of the recent share placement completed 
30 October 2009 which raised GBP56.9m (before costs), equivalent to ZAR731m 
based on prevailing exchange rates at the time. CoAL will apply the remaining 
proceeds of the placement to, amongst other things, accelerating capital 
expenditure at its Vele coking coal project and general working capital 
requirements. 
AUTHORISED BY: 
Shannon Coates 
Company Secretary 
 
 
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| Contacts                                                                  |  | 
| CoAL                            Tel: +61 (0) 417 985 383                  |  | 
| Simon Farrell                   Tel: +27 (0) 11 785 4518                  |  | 
| Blair Sergeant                                                            |  | 
| Azure Capital                   Tel: +61 (0) 8 6263 0888                  |  | 
| Geoff Ward                                                                |  | 
| Ryan Rockwood                                                             |  | 
| Evolution Securities            Tel: +44 (0) 20 7071 4300                 |  | 
| Simon Edwards                                                             |  | 
| Chris Sim                                                                 |  | 
| Conduit PR                      Tel: +44 (0) 20 7429 6603                 |  | 
| Jos Simson                                                                |  | 
| Leesa Peters                                                              |  | 
|                                                                           |  | 
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About CoAL: 
Coal of Africa Limited ("CoAL") is an AIM/ASX/JSE listed coal mining and 
development company operating in South Africa.  CoAL has three key projects 
including the 113 million tonne ('mt') Mooiplaats thermal coal mine, the 656 mt 
Vele coking coal project and the 1 bn tonne Makhado coking coal project. 
 
 
The Mooiplaats coal mine commenced production in 2008 and is currently ramping 
up to produce 2 mtpa. CoAL's Vele and Makhado coking coal projects are expected 
to start production in H1 2010 and Q4 2011 respectively producing an initial 2 
mtpa rising to a combined annual output of 10 mtpa of coking coal. 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
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