Coal of Africa announced a deal with ArcelorMittal in which the world’s largest steelmaker will take a 16 per cent stake in the group and buy a large part of its future coal output.

The Aim-listed group, formerly known as GVM Metals, said ArcelorMittal would buy 60m new shares at 111p each, raising £66.7m and giving the steel group about 16 per cent of the enlarged share capital.