| Wed 29 Jul 2009, 13:20 | | ABO - Absolute Holdings Limited - Acquisition Of 49% Of Dikopane NN Mining (PTY) |
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ABO
ABO
ABO - Absolute Holdings Limited - Acquisition Of 49% Of Dikopane NN Mining (PTY)
Limited ("DIKOPANE"); and granting of limestone prospecting rights
ABSOLUTE HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1986/004649/06)
Share code: ABO ISIN No: ZAE000062998
("Absolute" or "the Company")
VOLUNTARY ANNOUNCEMENT RELATING TO THE
* ACQUISITION OF 49% OF DIKOPANE NN MINING (PTY) LIMITED ("DIKOPANE"); AND
* GRANTING OF LIMESTONE PROSPECTING RIGHTS
1 Offer to purchase 49% of Dikopane
Absolute`s Board is pleased to announce that African Wilddogs Resources
(Pty) Limited and Mafatiki Mining Resources (Pty) Limited ("the Dikopane
shareholders") have accepted a binding offer by Absolute to purchase 49% of
the issued share capital in and 49% of the shareholders claims against
Dikopane.
Dikopane has been granted a Prospecting Right over various farms located in
the Northern part of the Free State Province, approximately 26km south-
southeast of Sasolburg and 28km north of Heilbron.
This Prospecting Right has been secured over 14,500 hectares in the
Vereeniging - Sasolburg coalfields.
The acquisition of the shareholding in Dikopane presents Absolute with an
opportunity to develop a prospective coal exploration project in line with
the Company`s stated strategy.
Salient Terms of the acquisition
In terms of the accepted offer to purchase, Absolute shall:
* pay to the Dikopane shareholders an initial amount of R1 million, to be
settled in equal proportions in cash and via the issue of 8 333 333 new
ordinary shares at 6 cents per share in Absolute;
* evaluate the feasibility of developing and mining the exploration assets by
funding and completing a bankable feasibility study ("the BFS"); and
* on conclusion of the BFS, have an option to purchase a further 11% of the
issued share capital of and claims against Dikopane via the issue of new
ordinary shares in Absolute.
The Dikopane acquisition is subject to the normal terms and conditions
applicable to a transaction of the nature contemplated.
2 Granting of Prospecting Rights
The Board of Absolute is further pleased to announce that the applications
submitted by Canyon Springs Investments 116 (Pty) Limited, a subsidiary of
Absolute, for prospecting rights for shale/brick clay and limestone in
respect of the following properties has been granted in terms of section
23(1) of the Mineral and Petroleum resources Development Act, 2002 (Act 28
of 2002).
* The Remhoogte Project, Western Cape - This prospecting right area is
approximately 868 hectares in size. Geological interpretations have
indicated that the area contains the strike extension of the limestone
horizon mined at the Soutkloof and Vondeling quarries by Pretoria Portland
Cement;
* The Zoutrivier Project, Western Cape - This prospecting right area is
approximately 1,971 hectares in size. The target area was selected on the
basis of geological interpretations that shows that the area is underlain
by the same limestone horizon as that already being mined in the Riebeeck
West area;
* The Brakfontein Project, Western Cape - this prospecting right area is
situated to the north of the Zoutrivier Project and is thus also
interpreted to contain the extension of the limestone deposit mined at a
quarry near Riebeeck West. This area is approximately 4,023 hectares in
size; and
* The Oude Bosch Kloof Project, Eastern Cape - The prospecting right area
measures approximately 1,418 hectares. It is understood that the same
limestone horizon was mined on the adjoining property (Loerie Quarry) until
recently. Extensive exploration drilling has been done on the Oude Bosch
Kloof limestone deposit in the late 1980s and early 1990s, and it is
understood that a limestone deposit (cement-grade) was present on the
property.
The notarised execution of these prospecting rights is expected to be finalised
on or before 31 August 2009.
JOHANNESBURG
29 July 2009
Corporate advisor Sponsor
Qinisele Resources (Pty) Arcay Moela Sponsors (Pty)
Limited Limited
Date: 29/07/2009 13:20:02 Produced by the JSE SENS Department.
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