Coal of Africa Limited Completion of the Mooiplaats colliery sale process (3693V)
02 November 2017 - 9:31AM
UK Regulatory
TIDMCZA
RNS Number : 3693V
Coal of Africa Limited
02 November 2017
ANNOUNCEMENT 2 November 2017
COMPLETION OF THE MOOIPLAATS COLLIERY SALE PROCESS
As announced on 2 October 2017, Coal of Africa Limited ("CoAL"
or the "Company") and its wholly owned subsidiary, GVM Metals
Administration (South Africa) Proprietary Limited (collectively the
"CoAL Group"), as well as its Black Economic Empowerment partner
Ferret Mining & Environmental Services Proprietary Limited
("Ferret") had entered into a sale of shares and claims agreement
("the Agreement") with Mooiplaats Coal Holdings Proprietary Limited
("MCH" or the "Purchaser") and Mooiplaats Mining Limited
("Mooiplaats"). In terms of the Agreement, CoAL and Ferret disposed
of 100% of their shares in Mooiplaats and the CoAL Group disposed
of their respective claims against Mooiplaats and its wholly owned
subsidiary Langcarel Proprietary Limited ("the Transaction"), the
owner of the Mooiplaats thermal coal colliery ("Mooiplaats
Colliery").
The Company is pleased to announce that all conditions precedent
for the Transaction have been timeously fulfilled or waived and in
accordance with its terms, the sale of the Mooiplaats shares and
claims for an aggregate purchase price of R179.9 million (the
"Purchase Price") has been implemented today, 2 November 2017.
The completion of the Transaction resulted, inter alia, in:
-- the payment of the initial tranche of R67.0 million of the Purchase Price being:
o R52.0 million to the CoAL Group; and
o R15.0 million to Ferret in full and final settlement of their
equity.
The balance of the R112.9 million Purchase Price will be settled
in not more than ten quarterly instalments (the "Deferred
Payments"), with the first Deferred Payment anticipated to be due
in August 2018, nine months after the closing of the Transaction.
The timing of the Deferred Payments is linked to the Department of
Mineral Resources approval of inter alia the incorporation of
Portions 2, 3 and the remaining extent of the farm Klipbank 295 IT
into the Mooiplaats Colliery New Order Mining Right ("NOMR"),
granted in terms of the Mineral and Petroleum Resources Development
Act (28 of 2002), and an application to effect this transfer has
been lodged with the department.
The Purchaser has replaced the Company's rehabilitation
guarantee required in terms of the Mooiplaats Colliery's NOMR, as
well as the Eskom guarantee (together the "Guarantees"). The
replacement and release of the Guarantees will result in a further
amount of approximately R16.0 million, which does not from part of
the Purchase Price, being received by the CoAL Group during
November 2017.
David Brown, Chief Executive Officer of CoAL, commented:
"The sale of the Mooiplaats Colliery concludes a process that
commenced during 2013 and is the final step in CoAL's five-point
turnaround strategy. It is a significant achievement for the
Company and required coordination and completion of multiple
transaction work streams. The funds received will be used to
support CoAL's project pipeline, in particular the development of
our flagship Makhado hard coking coal project and/ or potentially
contribute to the acquisition of a cash generating asset."
"In addition the sale of Mooiplaats is expected to yield annual
overhead savings for CoAL of US$1.4 million, an important factor in
CoAL's strategy of becoming a self-sufficient mid-tier coal
miner."
For more information contact:
Chief Executive +27 10 003
David Brown Officer Coal of Africa 8000
Chief Financial +27 10 003
De Wet Schutte Officer Coal of Africa 8000
+27 10 003
Stephen Rowse Business Executive Coal of Africa 8000
Endeavour Corporate +61 08 9316
Tony Bevan Company Secretary Services 9100
Company advisors:
Ross Allister/ Nominated Adviser Peel Hunt +44 20
Richard Crichton and Broker LLP 7418 8900
Jos Simson/ Barney
Hayward/ Annabel Financial PR +44 20
de Morgan (United Kingdom) Tavistock 7920 3150
Charmane Russell/Olwen Financial PR R&A Strategic +27 11
Auret (South Africa) Communications 880 3924
or
+27 82
372 5816
Investec Bank Limited is the nominated JSE Sponsor
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 Uitkomst Colliery, Makhado Project (coking and thermal
coal), Vele Colliery (coking and thermal coal) and the Greater
Soutpansberg Projects (MbeuYashu).
This announcement is inside information for the purposes of
article 7 of EU Regulation 596/2014.
Forward-Looking Statements
This Announcement, including information included or
incorporated by reference in this Announcement, may contain
"forward-looking statements" concerning CoAL that are subject to
risks and uncertainties. Generally, the words "will", "may",
"should", "continue", "believes", "expects", "intends",
"anticipates" or similar expressions identify forward-looking
statements. These forward-looking statements involve risks and
uncertainties that could cause actual results to differ materially
from those expressed in the forward-looking statements. Many of
these risks and uncertainties relate to factors that are beyond
CoAL's ability to control or estimate precisely, such as future
market conditions, changes in regulatory environment and the
behaviour of other market participants. CoAL cannot give any
assurance that such forward-looking statements will prove to have
been correct. The reader is cautioned not to place undue reliance
on these forward looking statements. CoAL assumes no obligation and
do not undertake any obligation to update or revise publicly any of
the forward-looking statements set out herein, whether as a result
of new information, future events or otherwise, except to the
extent legally required.
Statements of intention
Statements of intention are statements of current intentions
only, which may change as new information becomes available or
circumstances change.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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November 02, 2017 04:31 ET (08:31 GMT)
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