Botswana-focused coal developer Minergy Ltd. has decided to seek a U.K. listing instead of Johannesburg due to negative investor sentiment attached to South Africa, MiningMx reported Oct. 17, citing CEO Andre Bojé.
"It shows you how investment feeling about South Africa has turned negative," Bojé said.
"It is more expensive to list in London, but we will raise a small amount of cash to cover the listing costs. We can always do a fast-track listing in Johannesburg once we have an established presence in the U.K."
The company is primarily listed on the Botswana Stock Exchange, but it faces low liquidity in that market.
According to Bojé, Botswana-based pension funds are expected to increase their stakes in the company for about another 60 million Botswanan pula, equivalent to about 78 million South African rand. This will bring total funds raised to 135 million pula, which will be sufficient to help the company develop its Masama thermal coal mine.
The mine will have the capacity to produce about 1.2 million tonnes a year of salable coal.
In February, the company announced plans to raise up to 270 million Botswanan pula through listing on both the Botswana Stock Exchange and the Johannesburg Stock Exchange.
As of Oct. 16, US$1 was equivalent to 10.23 Botswanan pula.