The funds were raised through the placement of 29.9% of its shares to Coal Development Holding B.V, a wholly owned investment vehicle of the African Minerals Exploration & Development Fund, at A$0.14 each, a 45% premium to Universal's last traded price.
Universal has a 70.5% interest in Kangala, which hosts a resource of 147 million tonnes, with half in the measured category. Reserves are 19.5 million tonnes.
Kangala is also ideally situated in the Witbank coalfield in South Africa, which supplies more than 50% of South Africa's saleable export and domestic coal.
Universal has completed detailed design and engineering of the processing plant and infrastructure phases with preferred contractors commencing pre-site establishment activities for the construction, erection and commencement of mining operations at Kangala.
The company will follow up the Kangala project with the development of the Roodekop Project and Brakfontein Project subject to positive feasibility studies, financing and other regulatory approvals, with both projects being planned with the object of maximising their export coal potential.
It also has an earn-in agreement over two coking coal projects- Berenice and Somerville- that together contain 1.64 billion tonnes of JORC compliant resources.
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