African Energy's Sese coal project will uplift Botswana's status within the coal sector

Sentula and a consortium comprising of Miranda Mineral Holdings and Mochiba Investments have agreed the key commercial terms on which the consortium will acquire all of the shares in Benicon Coal for R150 million in cash.

“It is anticipated that Sentula will realise the R150 million by way of repayments of Nkomati’s existing indebtedness to Sentula under Nkomati’s existing loan facility; R100 million once the proposed transaction becomes effective and the balance by way of a deferred payment structure,” Sentula said in a statement.

The proposed transaction will be subject to the conclusion of a binding legal agreement, regulatory approvals and other conditions typical for a transaction of this nature.

The board of directors is still engaged in the strategic evaluation of the alternative options, including the disposal of the Bankfontein mining right, to further unlock shareholder value and commensurately reduce the Group’s senior debt, which review may result in actions that could have a material effect on the price of Sentula’s securities.