afr article, page-18

holders, the AFR would have got their detailds from the Patersons' recommendation on their extranet. Here's the bit from the Pato's website:

https://secure.psl.com.au/publication/your-market-daily/your-market-daily-121003#ZYL

ZYL Limited (ZYL) - BUY

Securing finance

ZYL Limited (ZYL) has been developing its two primary anthracite coal projects, Mbila and Kangwane Central, in South Africa. These assets are approaching the Bankable Feasibility Study (BFS) stage, which we expect will confirm the positive economics of the projects. But it is the financing required to achieve ownership milestones that have pre-occupied the company recently.

Convertible note - ZYL has been able to finalise a term sheet for an $18M Convertible Note. These funds will be used to finalise the Kangwane BFS and make the next two payments to the vendors of Mbila to increase ownership to 51%.
Secured relationships - The convertible note is a significant milestone as it cements the relationship between ZYL, one of its major shareholders and a major Chinese financial institution. We see this as an endorsement of the projects as the Chinese bank has conducted the required due diligence and is prepared to lend a significant amount of money at this stage of development.
Remodelling - The geological remodelling of the Mbila has given an increase in the confidence of the geological model and given cause for ZYL to revisit the scope of the project. The remodelling increased total (154Mt), measured (36Mt) and inferred (95Mt) resources estimates and decreased indicated (23Mt) resource estimates.
Bankable Feasibility Studies - ZYL was due to deliver the BFS on both Mbila and Kangwane during this quarter, Q4 CY2012. However it is likely the Mbila BFS will be later than expected due to the expansion of the Mbila BFS based around the remodelling. These are the final steps before off-take and debt negotiations can be progressed.
Valuation - The fundamentals of the projects remain unchanged but we have added the dilutive impact of York acquisition and the 18M options with the convertible note. We have also applied a country risk factor of 25% (0.75x NAV). We retain our Buy recommendation with a revised price target of $0.26/share.

Disclosure: Patersons Securities acted as Joint Lead Manager to a Placement that raised $30m at 20cps in April 2011. Patersons acted as Lead Manager to a Placement that raised $4.7m at 3.4cps in December 2010. It received a fee for this service.
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As a heads up, anyone can access Paterson's extranet and see what their daily recommendations are- link here:

https://secure.psl.com.au/publications/your-market-daily