Canaf's Southern Coal repays 14 million rand term loan
2019-01-21 10:03 MT - News Release
Mr. Christopher Way reports
CANAF ANNOUNCES FULL REPAYMENT OF TERM LOAN AND AWARD OF B-BBEE RATING
Canaf Investments Inc.'s majority-owned South African subsidiary, Southern Coal Pty. Ltd., has fully repaid a term loan. Southern Coal has also been awarded a level 4 broad-based black economic empowerment (B-BBEE) rating.
On Jan. 7, 2019, Southern Coal made its final payment for the 14-million-rand loan from ABSA bank, which was drawn down in February, 2015. Repayment of this loan now releases Southern Coal from monthly instalments of approximately 392,000 rand (approximately $37,000 (Canadian) or $28,000 (U.S.)), which the corporation plans to allocate to future diversification or expansion projects.
On Jan. 21, 2019, further to the corporation's announcement on Aug. 15, 2018, Southern Coal was awarded a level 4, B-BBEE rating. Christopher Way, chief executive officer of Canaf, states, "Achieving a level 4 rating is a proud achievement for Southern Coal and now frees up the company's ability to engage in long-term agreements with existing and new potential customers."
The achievement of both the repayment of debt and the award of a level 4 B-BBEE rating further strengthens the corporation's financial and strategic position, as it looks at new investment and expansion opportunities.
About Canaf Investments Inc.
Canaf is a public company listed on the TSX Venture Exchange. Canaf's registered office is in Vancouver, B.C., Canada, with subsidiary offices in the United Kingdom and South Africa. Canaf owns 100 per cent of Quantum Screening and Crushing Pty. Ltd., a South African-based company that owns 70 per cent of Southern Coal.
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