Coal of Africa Limited
(ASX:CZA) has announced it will dispute a notice from Rio Tinto Minerals Development and Kwezi Mining claiming a breach of obligations.
The notice alleges that Coal of Africa is in breach of an obligation under the agreements pursuant to which subsidiary company MbeuYashu acquired interests in Chapudi Coal and Kwezi Mining Exploration.
Rio Tinto claims all amounts owed by Coal of Africa and MbeuYashu are now due for payment.
Coal of Africa says 75 percent of the original US$75 million acquisition price has already been paid with arrangements underway to pay the remaining US$19 million still owing.
Coal of Africa recorded a net loss of $8.73 million at 30 June 2015.
