Coal Of Africa Ltd Completion Of Nucoal Acquisition
26 Januar 2010 - 8:30AM
Dow Jones News
TIDMCZA
RNS Number : 1013G
Coal of Africa Limited
26 January 2010
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ANNOUNCEMENT26 JANUARY 2010
COMPLETION OF NUCOAL ACQUISITION
Further to its announcement of 29 October 2009, Coal of Africa Limited ("CoAL"
or "the Company") is pleased to confirm the completion of the acquisition of
NuCoal Mining (Pty) Limited ("NuCoal"), following fulfillment of the suspensive
conditions to the Share Sale Agreement ("SSA") signed on 29 October 2009. After
adjusting for a 10% retention and adjustments to reflect the working capital
position (including certain non-current liabilities) as at 31 December 2009, the
final adjusted purchase price due to NuCoal is ZAR467m. The R65m retention will
be withheld in relation to certain warranties and in accordance with the terms
of the Share Sale Agreement.
In accordance with the terms of the SSA, CoAL's economic interest in NuCoal
commenced on 1 January 2010.
Commenting on the transaction, CoAL's Managing Director Simon Farrell said:
"The acquisition of NuCoal cements CoAL's position as an emerging South African
coal producer, transforming the Company into a multi-site producer, well placed
to take advantage of the current strength in, and attractive outlook for, global
coal markets"
NuCoal is a thermal coal producer with assets in South Africa in close proximity
to CoAL's Mooiplaats mine. NuCoal's Woestalleen Colliery, which produces 2.5Mtpa
of saleable coal for domestic and export markets, has a number of off-take
contracts in place. NuCoal has two beneficiation plants, one fully operational
mine producing 350kt per month of run of mine ("ROM") coal and has recently
commenced production at a second mine. In addition, NuCoal has a number of other
development projects which CoAL will evaluate in the context of the Company's
overall corporate strategy.
Azure Capital acted as Corporate Adviser to CoAL on the acquisition of NuCoal.
The acquisition was funded by proceeds of the recent share placement completed
30 October 2009 which raised GBP56.9m (before costs), equivalent to ZAR731m
based on prevailing exchange rates at the time. CoAL will apply the remaining
proceeds of the placement to, amongst other things, accelerating capital
expenditure at its Vele coking coal project and general working capital
requirements.
AUTHORISED BY:
Shannon Coates
Company Secretary
+---------------------------------------------------------------------------+--+
| Contacts | |
| CoAL Tel: +61 (0) 417 985 383 | |
| Simon Farrell Tel: +27 (0) 11 785 4518 | |
| Blair Sergeant | |
| Azure Capital Tel: +61 (0) 8 6263 0888 | |
| Geoff Ward | |
| Ryan Rockwood | |
| Evolution Securities Tel: +44 (0) 20 7071 4300 | |
| Simon Edwards | |
| Chris Sim | |
| Conduit PR Tel: +44 (0) 20 7429 6603 | |
| Jos Simson | |
| Leesa Peters | |
| | |
+---------------------------------------------------------------------------+--+
About CoAL:
Coal of Africa Limited ("CoAL") is an AIM/ASX/JSE listed coal mining and
development company operating in South Africa. CoAL has three key projects
including the 113 million tonne ('mt') Mooiplaats thermal coal mine, the 656 mt
Vele coking coal project and the 1 bn tonne Makhado coking coal project.
The Mooiplaats coal mine commenced production in 2008 and is currently ramping
up to produce 2 mtpa. CoAL's Vele and Makhado coking coal projects are expected
to start production in H1 2010 and Q4 2011 respectively producing an initial 2
mtpa rising to a combined annual output of 10 mtpa of coking coal.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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