Coal of Africa (CoAL) will receive $58.7m in debt and equity funding from Investec Bank to finance its infrastructure investment programmes across its mining operations.

Under the equity funding arrangement, Investec has subscribed for 16.8m CoAL shares at 29.21 pence per share and 2.2m shares at AUD43.70 cents per share, representing a 5% discount to the closing price of CoAL shares on 17 July.

John Wallington, CoAL chief executive, said the funds will be used for expenditure on its Makhado Project and to ramp-up production at the Vele Colliery and for general working capital purposes.

"Progress continues to be made at Vele with the coking coal test work and the finalisation of the Phase 1 capital project to enable the achievement of the initial target of one million tonnes per annum," said Wallington.

"The public participation process with the communities at Makhado has made significant progress since the formation of a community representative forum that is engaging positively with the company."