| Thu 30 Apr 2009, 10:15 | | CZA - Coal of Africa Limited - Extension Of BEE Agreement |
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CZA
CZA
CZA - Coal of Africa Limited - Extension Of BEE Agreement
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
(`CoAL` or `the Company`)
30 April 2009
EXTENSION OF BEE AGREEMENT
As announced on 13 June 2008, Coal of Africa Limited (`CoAL` or the `Company`)
entered into an agreement with Coal Investments Limited ("CIL") (the
"Agreement") pursuant to which CIL subscribed for shares and was granted an
option which if exercised, would result in African Global Capital I, L.P.
("AGC"), CIL and their affiliates holding in excess of 26% of the shares in the
Company, ensuring full compliance with South African legislative requirements
for black empowered groups ("BEE Groups") to hold at least a 26% equity interest
in mining companies by 2014.
CIL, AGC and their affiliates agreed to use commercially reasonable endeavours
to transfer their holdings in the Company into a BEE Group by 31 December 2008
to ensure that CoAL was fully compliant with BEE requirements. As announced on
31 December 2008, this date was extended by agreement between the parties to 30
April 2009.
Since 31 December 2008 AGC, CIL and their affiliates have progressed the
transfer of their holdings in the Company into a BEE Group, however, the process
is still ongoing and has not been completed as at 30 April 2009. Completion
depends on, amongst other things and not limited to, regulatory and other
approvals. Some of these approvals are not in the direct control of AGC, CIL and
their affiliates. AGC, CIL and their affiliates will continue to work with the
Company and will continue to use commercially reasonable endeavours to transfer
their holdings in the Company into a BEE Group.
CoAL advises that the parties have agreed to further extend the date by which
CIL, AGC and their relevant affiliates must use commercially reasonable
endeavours to transfer their holdings in the Company to a BEE Group to 31 July
2009.
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
Simon Edwards/ Chris Sim Evolution Securities
+44(0) 20 7071 4300
Jos Simson/ Gareth Tredway Conduit PR +44(0) 20 7429 6603
About CoAL:
Coal of Africa Limited ("CoAL") 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.
About AGC:
AGC is the first fund managed by the recently-formed private equity initiative
involving Mvelaphanda Holdings (Proprietary) Limited ("Mvela "), OZ Management
LP ("OZ Management"), an operating entity of Och-Ziff Capital Management Group
LLC (NYSE: OZM) ("Och-Ziff"), and Palladino Holdings Ltd. CIL is owned by
affiliated investment funds of Och-Ziff.
Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd
Date: 30/04/2009 10:15:01 Produced by the JSE SENS Department.
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