A US$6 million convertible loan facility from Resource Capital Fund has been closed by Forbes & Manhattan Coal.

Forbes Coal, a TSX– and JSE-listed company that produces coal in Southern Africa, will be using the loan facility as general working capital in relation to the operations and exploration of properties in Dundee, South Africa. It is convertible into common shares of Forbes Coal at a price of C$0.36 per common share for gross proceeds of up to $2 million.

Resource Capital Fund (RCF) will not be participating in the private placement of common shares, which is expected to close on September 18, 2013. However, RCF will be entitled to common shares at C$0.36 each instead of the repayment of US$1,363,397 in interest and the embellishment fee of 3% in cash.

6,867,443 (19.97%) of the issued and outstanding common shares of Forbes Coal is currently owned by RCF, and this is projected to increase to 21,427,284 common shares, subject to the approval of the private placement by shareholders, which is expected to be finalised on September 11, 2013.

Additional Reading?

Request Free Copy