The arrangement provides the coal company with ZAR180m ($16.2m) five-year term loan and ZAR20m ($1.8m) five-year working capital facility.
The company plans to use ZAR70m to retire the existing Investec term facility, while the remaining ZAR110m will be used for commissioning of the Elandspruit operations. The funds will be used for the acquisition of the Muhanga coal processing plant.
Wescoal CEO Andre Boje said: "This structure will provide funding for capex and development of our flagship Elandspruit operation.
"The decision to opt for debt as opposed to equity is so that shareholding is not diluted.
"Elandspruit Colliery increases our life of mine beyond 15 years and coupled with the Muhanga coal processing plant as well as our established Trading business, Wescoal is a well-rounded coal operation."
