Johannesburg, South Africa — 11 May 2012 – Coal exploration, development and mining company Coal of Africa Limited (CoAL) has been granted official South African government approval for the purchase of the Chapudi coal project and related exploration properties in South Africa’s Soutpansberg coalfield in the Limpopo Province.
Coal of Africa CEO John Wallington commented: “The granting of the Section 11 consents by the minister concludes the regulatory steps to complete the acquisition of the Chapudi coal assets, strengthening the company’s position as one of the most substantial holders of prospecting and mining rights for coking coal in the region.”
“The transaction provides significant scale and optionality in the planning of future mining projects, and will enable the consolidation of several contiguous tenements in the Soutpansberg coalfield. The detailed planning and technical work required as part of this process has commenced with our partners, while the reserve and resource calculations of these newly- acquired coal assets are being evaluated. A further update will be issued to the market in due course,” he added.
The date for the fulfilment of the conditions precedent for the sale of the equity has been extended from 30 April to 31 May 2012, and the date for the fulfilment of the conditions precedent for the sale of the shareholder claims was extended from 30 June to 31 July 2012.
The purchase consideration remains US$75 million in aggregate, of which a US$2 million deposit has been paid. South African Reserve Bank exchange control approval for the sale of the equity was received in early April 2012
Source: Coal of Africa Limited. For more information, click here.