Brönn, in his capacity as COO of Coal of Africa, contravened Section 78 (1) (a) of the Financial Markets Act, 19 of 2012.
Brönn will forfeit all share-based incentive awards and shall not be entitled to receive any bonus payments from Coal of Africa for the year ending June 2017.
Brönn purchased 117 000 Coal of Africa shares knowing the Department of Mineral Resources had approved an application for Coal of Africa’s Makhado project according to the Financial Services Board (FSB).
Three days after purchasing the shares, an announcement regarding the Makhado project was published resulting in Coal of Africa’s share price to rise to a record high.
Brönn has been ordered by the FSB to pay the investigation costs of his case in addition to the penalty.
The Makhado project in the Soutpansberg Coalfield, 36 km north of Makhado town on the N1 or 65 km southwest of Musina and 80 km southeast of Vele, Limpopo Province, is Coal of Africa’s most advanced feasibility-stage project. The resource will initially be mined on an opencast basis over 16 years with the potential for further expansion into underground.
Department of Environmental Affairs Minister Edna Molewa recently dismissed an appeal against the environmental authorisation amendment for Coal of Africa’s Makhado project.
Makhado’s 26-month construction phase is expected to start in the first half of 2017, as soon as all regulatory approvals are in place, with a further four month ramp-up phase resulting in the production of 5.5 Mtpa of saleable product.
Feature image credit: Coal of Africa