Update on Acquisition of Coal Assets (3295M)
August 15 2011 - 2:00AM
UK Regulatory
TIDMCZA
RNS Number : 3295M
Coal of Africa Limited
15 August 2011
ANNOUNCEMENT 15 AUGUST 2011
UPDATE ON THE ACQUISITION OF RIO TINTO'S SOUTH AFRICAN COAL
ASSETS
Coal of Africa Limited ("CoAL" or "the Company") advises that
irrevocable undertakings from the vendor shareholders have been
obtained in terms of the Sale and Purchase Agreement ("SPA")
entered into on 26 November 2010 for the acquisition by the Company
of the Chapudi Coal Project and Related Exploration Properties
(collectively, the "Coal Assets") in South Africa's Soutpansberg
coal basin in the Limpopo province, from joint venture companies
held by Rio Tinto Minerals Development Limited and Kwezi Mining
(Proprietary) Limited (collectively, the "Vendors").
The SPA has been extended to allow for the remaining regulatory
approvals required, including Ministerial consent in terms of
section 11 of the Mineral and Petroleum Resources Development Act
for the Company's acquisition of the Coal Assets, to be obtained.
The date for fulfillment of the conditions precedent has
accordingly been extended from 12 August 2011 until 30 April
2012.
JOHN WALLINGTON
Chief Executive Officer
For more information contact:
John Wallington Chief Executive Officer Coal of Africa +27 11
575 7423
Wayne Koonin Finance Director Coal of Africa +27 11 575 4363
Shannon Coates Company Secretary Coal of Africa +61 893 226
776
Chris Sim/Romil Patel Nominated Adviser Evolution Securities +44
20 7071 4300
Jos Simson/Emily Fenton Financial PR Tavistock +44 207 920
3150
Melanie de Nysschen/ Annerie Britz/ JSE Sponsor Macquarie +27 11
583 2000
Yvette Labuschagne
www.coalofafrica.com
About CoAL:
CoAL is an AIM/ASX/JSE listed coal mining and development
company operating in South Africa. CoAL's key projects include the
Vele Colliery (coking coal), the Makhado Project (coking coal) and
the Mooiplaats and Woestalleen Collieries (both thermal coal).
The Mooiplaats Colliery commenced production in 2008 and is
currently ramping up to produce 2 million tonnes per annum
("Mtpa"). CoAL's Vele Colliery and Makhado Project are expected to
start production in the first half of 2012 and the first half of
2013 respectively. These operations are targeted to collectively
produce an initial 1Mtpa ramping up to a combined annual output of
10Mtpa of coking coal.
In 2010, CoAL completed the ZAR467m acquisition of NuCoal Mining
(Pty) Limited ("NuCoal"), a thermal coal producer with assets in
South Africa in close proximity to CoAL's Mooiplaats Colliery.
NuCoal owns the Woestalleen Colliery, which has a number of
off-take contracts in place and processes approximately 2.5Mtpa of
saleable coal for domestic and export markets. The Woestalleen
Colliery also incorporates two beneficiation plants with a total
processing capacity of 350,000 run of mine feed tonnes per
month.
In November 2010, CoAL agreed to acquire the Chapudi coal
project and several other coal exploration properties in the
Soutpansberg coal basin in South Africa from the previous owners,
including Rio Tinto. When completed, the acquisition of these
projects will significantly extend the scale and scope of certain
of CoAL's existing projects in the region and will more than double
the resource of the existing Makhado Project.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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