|Canaf announces full repayment of term loan and award of B-BBEE rating|
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. Canaf has been awarded a level 4 broad-based black economic empowerment (B-BBEE) rating.
On 07 January 2019, Southern Coal (Pty) Ltd., ("Southern Coal") the Corporation's majority owned South African subsidiary, 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 (approx. C$37,000 or US$28,000), which the Corporation plans to allocate to future diversification or expansion projects.
On 21 January 2019, and further to the Corporation's announcement on 15 August 2018, Southern Coal was awarded a Level 4, B-BBEE rating. Christopher Way, Chief Executive Office 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.
Canaf is a public company listed on the TSX-V Exchange. Canaf's registered office is in Vancouver, Canada, with subsidiary offices in the United Kingdom and South Africa. Canaf owns 100% of Quantum Screening and Crushing (Pty) Ltd., ("Quantum"), a South African based company that owns 70% of Southern Coal (Pty) Ltd., ("Southern Coal"), a company that produces a high carbon, de-volatised (calcined) anthracite.
About Southern Coal
Southern Coal produces calcined anthracite, a product used primarily as a substitute to coke in sintering processes. Southern Coal produces calcined anthracite by feeding washed anthracite coal through rotary kilns, at temperatures between 900 and 1100 degrees centigrade; the volatiles are driven off and the effective carbon content increased.
Southern Coal's two largest clients are African leaders in steel and ferromanganese production. Southern Coal operates near Newcastle, KwaZulu-Natal, where Quantum's three kilns operate; the majority of Southern Coal's feedstock anthracite is supplied from local anthracite mines in KwaZulu-Natal.
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