Coal of Africa has signed a sale and purchase agreement with a wholly owned subsidiary of Blackspear Holdings for the disposal of the Mooiplaats Colliery for a gross consideration of R250 million (US$23.47 million) in cash.
Upon fulfilment of all conditions precedent including the receipt of regulatory approvals consistent with a transaction of this nature, the consideration will be settled in two tranches, with the first tranche of R150 million (US$14.084 million) expected to be received during the first quarter of CY2015. The second tranche of R100 million (US$9.39 million) is payable on the earlier of 12 months from the payment of the first tranche or 30 November 2015.
The Mooiplaats Colliery has been placed on care and maintenance from 1 October 2013.
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