https://www.miningweekly.com
Africa|Coal|Mining|PROJECT|Projects|SECURITY
Africa|Coal|Mining|PROJECT|Projects|SECURITY
africa|coal|mining|project|projects|security

Cash-strapped SA coal developer goes into administration

Cash-strapped SA coal developer goes into administration

Photo by Bloomberg

9th January 2015

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

Font size: - +

PERTH (miningweekly.com) – South Africa-focused coal developer ZYL this week went into voluntary administration, as the company failed to secure long-term financing in the declining commodity market.

ZYL was on the hunt for funding to allow the company to review its existing projects and to possibly acquire new projects. However, ZYL said this week that despite the company’s best efforts, it had been unable to raise the necessary funding in the current market conditions.

Meanwhile, Prestige Glory, which holds security over ZYL’s assets, has entered into an agreement with Ascent Capital Holdings, under which the two were proposing a deed of company arrangement that would see the recapitalisation of ZYL through a 100-for-1 share consolidation, and subsequent placement of 11-million new fully paid ordinary shares, at 1c a share, post the appointment of administrators.

ZYL’s South African mining assets, apart from the Kangwane South project, would be transferred to Prestige in satisfaction of the secured debts owed to Prestige.

If required, Ascent would provide interim loans to the administrators and to ZYL to complete the recapitalistion process.

ZYL said that given the agreement between Prestige and Ascent, the company’s board had resolved to appoint an administrator.

Following the recapitalisation process, ZYL’s entire focus would be geared towards the Kangwane South project. The project was currently in the feasibility study phase, and was estimated to host a resource of some 299.7-million tonnes.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

Comments

Showroom

Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

VISIT SHOWROOM 
Environmental Assurance (Pty) Ltd.
Environmental Assurance (Pty) Ltd.

ENVASS is a customer and solutions-driven environmental consultancy with established divisions, serviced by highly qualified and experienced...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

PGMs and green hydrogen make headlines
PGMs and green hydrogen make headlines
19th April 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.111 0.152s - 91pq - 2rq
1:
1: United States
Subscribe Now
2: United States
2: