JSE-listed Wescoal Mining entered into a new agreement with Mintirho Mining on 10 June, regarding the acquisition of a coal mining right for Intibane Phase 2 from Mintirho Mining, comprising the 170 1362 ha Portion 2 of the farm Vlakvarkfontein in Delmas, Mpumalanga, following a lapse in the first agreement.
In August 2014, Wescoal Mining purchased the Mining Right, various capital items and access to the resource from Mintirho Mining for R69 390 000, exclusive of VAT, payable in a combination of cash and royalty payments.
Wescoal has already advanced R30 836 000 to Mintirho Mining, while R38 554 000 is still outstanding and will be paid by Wescoal in monthly instalments, the first of which was payable on 1 June.
The acquisition is subject to fulfilment of the following conditions precedent:
- by no later than 15 August 2015, the shareholders of Mintirho Mining pass a special resolution approving the transfer of the Mining Right;
- by no later than 15 August 2015, the directors of Mintirho Mining pass a resolution authorising the entering into of the Agreement;
- by no later than 15 August 2015, mortgage bonds are registered by Blanford 003 over three of its properties in favour of Mintirho for payment of the purchase price; and
- by no later 15 January 2018, Section 11 consent or alternatively Section 102 consent (whichever applies) is granted by the Minister of the Department of Mineral Resources.