| Mon 18 Feb 2008, 7:16 | | CZA - Coal of Africa Limited - Approval received and new agreement reached to |
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CZA
CZA
CZA - Coal of Africa Limited - Approval received and new agreement reached to
acquire 100% interest in Mooiplaats Coal project, South Africa
Coal of Africa Limited
(previously, "GVM Metals Limited")
(Incorporated and registered in Australia)
(Registration number ABN 008 905 388)
Share code on the JSE Limited: CZA
ISIN AU000000CZA6
Share code on the Australian Stock Exchange Limited: CZA
ISIN AU000000CZA6
APPROVAL RECEIVED AND NEW AGREEMENT REACHED TO ACQUIRE 100% INTEREST IN
MOOIPLAATS COAL PROJECT, SOUTH AFRICA
* Section 11 (1) approval received satisfying last remaining condition
to complete acquisition of the 70% interest in the Mooiplaats Coal
Project ("Mooiplaats")
* Coal of Africa Limited ("CoAL" or "the Company") also reaches
agreement to acquire remaining 30% interest in Mooiplaats for ZAR 130
million and 4.75 million shares
CoAL of Africa Limited (ticker "CZA"), the AIM/ASX/JSE listed coal development
company operating in South Africa, today announces that it has received consent
from the Deputy Director General: Mineral Regulation Department of Minerals and
Energy, in terms of Section 11(1) of the Minerals and Petroleum Resources
Development Act 2002, satisfying the last remaining condition precedent for
CoAL to complete its acquisition of 70% of the issued capital of the South
African company that owns Mooiplaats (70% Acquisition").
CoAL will now make the final GBP10 million cash payment and issue the remaining
4.44 million shares in the Company to take its interest to 70%.
Furthermore, CoAL is pleased to announce that it has also reached agreement to
acquire the remaining 30% interest ("30% Acquisition"), taking its interest in
Mooiplaats to 100% upon completion.
Total consideration payable for the 30% Acquisition has been agreed at ZAR130
million in cash, together with 4.75 million shares in CoAL. Based on the
current share price and foreign exchange rates, this equates to approximately
A$26.2 million (approximately GBP8.65 million). The issue of the 4.75 million
shares is subject to shareholder approval.
Settlement of both transactions, save for the issue of 4.75 million shares
pursuant to the 30% Acquisition which remains subject to shareholder approval,
is expected within the next two weeks. The Company will lodge the relevant
Appendix 3B and the application for admission to AIM for the 4.44m consideration
shares (relating to the 70% Acquisition) under separate cover and will lodge a
Notice of Meeting to, amongst other things, approve the issue of 4.75 million
shares, in due course.
Managing Director of CoAL, Mr Simon Farrell said, "Receiving Section 11 approval
is a significant milestone, crystallising the Company`s control in bringing
Mooiplaats into production. This, together with the agreement to take our
interest to 100% clearly provides maximum upside and reward to the Company`s
shareholders at time when spot coal prices continue trade at record levels."
Yours sincerely,
SIMON J FARRELL
Managing Director
For more information contact:
Simon Farrell, Managing Director
CZA +61 417 985 383 or +61 8 9322 6776
Petronella Gorrie
The Event Shop +27 82 827 8815
Leesa Peters/ Jos Simson
Conduit PR +44(0) 20 7429 6606
Olly Cairns/ Romil Patel
Blue Oar Securities Plc +618 6430 1631 +44(0) 20 7448 4400
About CoAL:
Coal of Africa Limited ("CoAL"), formerly GVM Metals Limited, is primarily
focused on the acquisition, exploration and development of thermal and
metallurgical coal projects. The Company`s key projects, along with its leading
metals processing company NiMag Group (Pty) Ltd are in South Africa. The Company
was incorporated in Western Australia and listed in 1980. Since 2005, the
Company has also listed on both the AIM and JSE markets, allowing further growth
in the Company`s coal assets.
18 February 2008
Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Limited
Date: 18/02/2008 07:16:44 Produced by the JSE SENS Department.
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