Forbes & Manhattan Coal Corp., through its subsidiary Slater Coal Pty Ltd, has secured a ZAR230 million ($30 million) loan facility from Investec Ltd., an international investment and private banking group. Funds from the loan facility will be used to further the company’s expansion plans.
“Forbes Coal’s new loan facility, combined with current working capital, puts the company in an even better financial position,” said Stephan Theron, president and CEO of Forbes Coal. “Our goal continues to be to grow the company both organically and through acquisitions, becoming a mid-tier coal producer within the next few years.”
The loan facility consists of a five year senior secured amortizing term loan facility of up to ZAR200 million (approximately C$25 million) and a revolving loan facility of up to ZAR30 million (approximately C$5 million).
Forbes Coal is a growing coal producer in southern Africa. It holds a majority interest in two operating mines through its 76.75% interest in Slater Coal, a South African company, which has a 70% interest in Zinoju Coal (Pty) Ltd. Zinoju holds a 100% interest in the Magdalena bituminous mine and the Aviemore anthracite mine in South Africa. The mines have a substantial combined resource of coal and each mine has a projected life span in excess of 20 years. Forbes Coal is in the process of increasing production at both mines and looks to triple production from 2010 levels in the next three years using existing infrastructure and capacity. The company has in-place transportation infrastructure allowing its coal to reach both export corridors and the growing domestic coal market.
