ZYL Limited (ASX: ZYL) is in pre-open this morning after the ASX granted the company a trading halt, pending an announcement on the status of the MOU to restructure the original Kangwane Central transaction.
Kangwane is an anthracite project located in South Africa.
The trading halt will last until the earlier of an announcement being made to the market, or the opening of trade on Friday 3rd May 2013.
ZYL had $1.4 million in cash at the end of March 2013.
ZYL proposes to undertake an underwritten non-renounceable rights issue, pursuant to a Prospectus, on the basis of at least one ZYL share for every two ZYL shares held at the record date at a minimum issue price of $0.02 per share.
Prestige Glory will fully underwrite the rights issue or procure that the rights issue is fully underwritten. The issue will raise a minimum of $5.6 million net of costs, with the proceeds to be used to fund general working capital, ongoing compliance as well as requirements of the company's projects.
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