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SCN - Schamin - Acquisition By Scharrig Mining Of A Stake In Koornfontein
Coal Mine
SCHARRIG MINING LIMITED
(Registration number 1992/001973/06)
Share code: SCN & ISIN: ZAE000006474)
("Schamin" or "the Company")
ACQUISITION BY SCHARRIG MINING OF A STAKE IN KOORNFONTEIN COAL MINE
Schamin is pleased to announce the acquisition of 49.998% of the Koornfontein
coal mine in Mpumalanga for R150 million from Investec Bank and Coronation
Capital. The remaining 50.002% of equity is owned by a consortium led by
Siyanda Resources.
The mine is a large underground operation adjacent to Eskom`s Komati power
station and has good infrastructure and accessibility to rail transport. The
colliery produces about 4 million tons of coal per year, of which about 1.5
million tons is exported annually under entitlement through Richards Bay Coal
Terminal. Additionally coal is supplied directly to Eskom for electricity
generation.
In line with the agreement contained in the Merafe Coal joint venture between
Merafe Resources and Scharrig, 50% of the purchased stake is being offered to
Merafe Resources on a first option basis.
Scharrig Mining Chief Operating Officer Robin Berry commented: "We want to
optimise our exposure to high quality operations to capitalise on the
continued strong demand for coal and mining services. This shareholding will
be a valuable addition and synergistic fit to our recently established coal
mining ventures. It significantly enhances the potential of our coal
resources."
The share purchase is subject to inter-alia JSE and regulatory approvals and
is expected to become unconditional during November 2007.
In terms of JSE Limited categorisation calculations, the transaction
constitutes approximately 3% of Schamin`s market capital, and therefore this
announcement is made for information purposes only.
For more information on Scharrig Mining refer to www.scharrig.co.za
Boksburg
4 October 2007
Corporate advisor
Manhattan Equity Corporate Finance (Pty) Limited
Sponsor
Arcay Moela Sponsors (Pty) Limited
Date: 04/10/2007 15:57:49 Produced by the JSE SENS Department.
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