| Mon 3 Sep 2007, 8:53 | | SCN - Scharrig Mining Limited - Press Release |
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SCN
SCN
SCN - Scharrig Mining Limited - Press Release
SCHARRIG MINING LIMITED
(Registration number 1992/001973/06)
Share code: SCN ISIN: ZAE000006474)
("Schamin" or "the Company")
PRESS RELEASE
Scharrig Mining Limited, Jonah Capital Limited and Aquila Resources Limited are
pleased to announce the formation of a joint venture to accelerate the
evaluation and development of significant coal resources in Botswana and
progress plans to construct related power generation facilities. The opportunity
to fast track this development has arisen due to the growing demand for power in
the Southern African region and the establishment of joint venture with strong
in-country leadership, technical capacity and an excellent resource base.
Scharrig Mining Limited is a leading African mining services entity listed on
the JSE Limited (share code SCN), with a market capitalisation in excess of
R4,5bn. The company contracts its opencast mining and exploration drilling
services to many "blue chip" clients across the continent and recently entered
the coal operations arena, through its joint venture in Merafe Coal and the
Nkomati Anthracite operation.
Jonah Capital Limited is a private Pan African investment company that focuses
on the mining, financial services and infrastructure sectors. Jonah Capital`s
mission is to create wealth for shareholders by investing in companies with
exceptional growth prospects within select sectors in Africa. Jonah Capital
embodies an entrepreneurial, opportunistic culture and seeks to achieve long-
term relationships with its partners and all its stakeholders.
Aquila Resources Limited is a West Australian based mining company focusing on
the bulk commodities utilised by the steel industry, being predominantly coal
and iron ore. Aquila`s geographical focus is Australia and Southern Africa, and
it has offices in Perth, Brisbane and South Africa. Aquila is listed on the
Australian Securities Exchange (stock code AQA).
Under the terms of the Shareholders Agreement, Scharrig Mining Limited and Jonah
Capital Limited will earn an aggregate 50% interest in the Botswana tenements.
An initial interest of 16.67% will be earned by the payment to Aquila of US$5m
and the balance of the interest will be progressively earned by the expenditure
of US$10m on an extensive work programme on the Botswana tenements.
This transaction supports Scharrig Mining`s overall strategy to further enhance
the company`s standing as a developer of coal opportunities.
Commenting on the joint venture, Sir Sam Jonah said "This is an exciting
project, not only for the joint venture partners, but also for the development
of the Southern African region as a whole. Jonah Capital is excited to be
associated with our JV partners Scharrig and Aquila. Our vision is to create a
competitive, globally significant Botswana coal company for the benefit of all
stakeholders including the Botswana government and its people. The consortium
brings to the project the wealth of expertise, capital, and experience and
importantly the political tail wind needed to take this process to completion in
as short a time as possible. We see this as a great opportunity for Jonah
Capital; a Pan African focused company, totally committed to the development of
Africa."
The project areas are situated near rail, road and power infrastructure and
cover an area of 4719km2. Recent drilling has confirmed the thickness and
quality of the coal seams identified in extensive drilling campaigns on the
properties in the 1980`s.
Robin Berry, Chief Operating Officer of Scharrig Mining Limited commented "We
are excited about this significant transaction which is in line with our
strategy to broaden our geographic reach, our client base and our operational
skills. The joint venture is an effective way of tapping an extensive resource
to provide the necessary coal for power generation to meet the huge increase in
demand across the sub-continent."
Shareholders, analysts and the media are invited to join a conference call at
11h00 on Monday 3 September 2007 to participate in a management information
session and to discuss the transaction. Conference call participants shall have
to dial - toll free - 0800 200 648 or - toll - 011 535 3600. The playback
recording will be available on 011 305 2030, PIN code 99307# from Monday
afternoon.
Shareholders are also referred to the detailed cautionary announcement released
on SENS this morning.
Boksburg
3 September 2007
Date: 03/09/2007 08:53:01 Produced by the JSE SENS Department.
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