Conditions Precedent fulfilled for NiMag disposal (5661A)
April 02 2012 - 2:01AM
UK Regulatory
TIDMCZA
RNS Number : 5661A
Coal of Africa Limited
02 April 2012
ANNOUNCEMENT 2 APRIL 2012
Conditions Precedent fulfilled for NiMag disposal
Further to the announcements on 23 December 2011 and 26 February
2012 relating to the proposed management buyout ("MBO") of Nimag
(Pty) Ltd ("NiMag") and Metalloy Resources Investments (Pty) Ltd
(together "the NiMag Group") for a total consideration of R54.0
million in cash ("Purchase Consideration") and the extension of the
date for satisfaction of the conditions precedent under the
applicable agreement from 28 February 2012 to 30 April 2012, Coal
of Africa ("CoAL or the Company") is pleased to advise that the
conditions precedent to the disposal of NiMag were fulfilled on 31
March 2012 and accordingly, the MBO took immediate effect.
Payment of R32.4 million representing 60% of the Purchase
Consideration, less costs of up to R0.4 million, are payable to
CoAL on or before the closingdate of 10 April 2012. The balance of
the Purchase Consideration will be financed by way of a vendor loan
provided by CoAL, with acession of 40% of the shares in the NiMag
Group held by CoAL as security against the loan. Provision is made
for the outstanding balance to be increased if payment dates are
not met.
The loan bears interest at the South African prime overdraft
rate less 0.5%, payable quarterly in arrears. The capital is
repayable in 12 equal quarterly instalments following the 39(th)
month after the date of advance of the ABSA funding for the MBO or
the date of repayment of the ABSA loan in full.
On closing, the requisite share transfer forms and certificates,
board resolutions and other matters ordinarily associated with
closing of a transaction of this nature will be attended to.
As previously advised in the Company's Registration Document
published on 31 October 2011, the NiMag Group asset is considered
to be non-core and has been classified as an asset held for
sale.
JOHN WALLINGTON
Chief Executive Officer
For more information contact
John Wallington Chief Executive Officer Coal of Africa +27 11
575 4363
Wayne Koonin Financial Director Coal of Africa +27 11 575
4363
Shannon Coates Company Secretary Coal of Africa +61 893 226
776
Chris Sim/ Jeremy Ellis/ Neil Elliot Nominated Adviser Evolution
Securities
+44 20 7071 4300
Jos Simson/Emily Fenton Financial PR (United Kingdom) Tavistock
+44 207 920 3150
Reuben Govender JSE Sponsor J.P. Morgan Equities Ltd +27 11 507
0430
Charmane Russell/Jane Kamau Financial PR (South Africa) Russell
& Associates +27 11 880 3924
+27 82 372 5816
www.coalofafrica.com
About CoAL:
CoAL is an AIM/ASX/JSE listed coal exploration, development and
mining company operating in South Africa. CoAL's key projects
include the Vele Colliery (coking and thermal coal), the Makhado
Project (coking coal) and the Mooiplaats and Woestalleen Collieries
(both thermal coal).
The Mooiplaats Colliery commenced production in 2008. The
Woestalleen Colliery, acquired through the acquisition of NuCoal
Mining (Pty) Limited in January 2010, currently processes
approximately 2.5Mtpa of saleable coal for domestic and export
markets. The Woestalleen Complex also incorporates three
beneficiation plants with a total processing capacity of 350,000
ROM feed tonnes per month.
CoAL's Vele Colliery commenced production in Q3FY2012. During
the initial phase, the operation is targeting 2.7Mtpa ROM
production to produce 1Mtpa of saleable coking coal. The Makhado
Project, CoAL's flagship project in the Soutpansberg coalfield, is
well into the feasibility stage, with a DFS completed. Application
for a new order mining right for the Makhado Project was submitted
in January 2011.
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. Upon completion, 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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