Shareholders of Wescoal are advised that Wescoal, through its wholly-owned subsidiary, Keaton Mining, has entered into two indivisible memoranda of agreement for the purchase of immovable property from Johan Louis Venter Testamentere Trust and Andries Schoeman Brakfontein Boerdery, in terms of which Keaton Mining will acquire the remaining extent of Portion 8 of the Farm Vanggatfontein 251, Mpumalanga and the remaining extent of the Farm Vanggatfontein 251, Mpumalanga.
The effective date of the Acquisitions is anticipated to be no later than 30 June 2019.
Wescoal currently owns the mineral rights of Farm Vanggatfontein and these Acquisitions will result in Wescoal acquiring the surface rights of Farm Vanggatfontein.
The company does not intend to continue the farming operations on the Farm Vanggatfontein but will utilise the Properties to expand its Vanggatfontein colliery’ mining operations.
The Acquisitions will allow the company access to additional mining faces for the Vanggatfontein colliery, which enables the opportunity for improved consistency of coal qualities.
This is in line with Wescoal's stated intentions to extend and optimise its asset base and the Acquisitions form part of the integrated development plan for the Vanggatfontein complex.
Keaton Mining will acquire the immovable property of the Farm Vanggatfontein from the Sellers for a total purchase consideration of R63.25 million.