| Fri 23 Oct 2009, 7:07 | | CZA - Coal of Africa - Completion of acquisition of 6% interest in Limpopo |
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CZA
CZA
CZA - Coal of Africa - Completion of acquisition of 6% interest in Limpopo
Coal
Coal of Africa Limited
(previously, "GVM Metals Limited")
(Incorporated and registered in Australia)
(Registration number ABN 008 905 388)
JSE Share code: CZA
ASX Share code: CZA
ISIN: AU000000CZA6
("CoAL" or the "Company")
COMPLETION OF ACQUISITION OF 6% INTEREST IN LIMPOPO COAL
Further to its announcement of 14 July 2009, and following satisfaction of all
suspensive conditions CoAL, the AIM/ASX/JSE listed coal mining and development
company operating in South Africa (ticker: CZA), advises that it has today,
Friday, 23 October 2009, issued 1,990,000 fully paid ordinary shares at a
deemed issue price of 34 pence to Shangoni Bezwe Management Services
(Proprietary) Limited to acquire a 6% interest in Limpopo Coal Company
(Proprietary) Ltd ("Limpopo Coal"), the company that owns the Vele coking coal
project near Musina in the Limpopo Province ("Vele Project"). This increases
CoAL`s total interest in Limpopo Coal to 80%.
CoAL also announced on 14 July 2009 that it had executed a Sale of Shares and
Claims Agreement with Tranter Holdings (Pty) Ltd to acquire the remaining 20%
of the issued share capital of Limpopo Coal that it does not own. The
consideration payable in respect of the 20% acquisition is 5,625,750 fully
paid ordinary shares in the Company, subject to the fulfilment or waiver of
the following outstanding conditions:
1. The acquisition being approved by the Exchange Control Department of the
South African Reserve Bank, either unconditionally or subject to such
conditions as may be reasonably acceptable to the parties, by 31 October
2009; and
2. Limpopo Coal being granted a New Order Mining Right pursuant to S23 of
the South African Minerals and Petroleum Resources Development Act, 2002,
in respect of the Farms comprising the Vele Project by 31 December 2009.
Completion of the acquisition of the remaining 20% interest will take CoAL`s
interest in the Vele Project to 100%.
An Appendix 3B will be lodged following this announcement.
SECONDARY TRADING NOTICE PURSUANT TO PARAGRAPH 708A(5)(E) OF THE CORPORATIONS
ACT 2001 ("ACT")
The Act restricts the on-sale of securities issued without disclosure, unless
the sale is exempt under section 708 or 708A of the Act. By giving this
notice, a sale of the shares noted above will fall within the exemption in
section 708A(5) of the Act.
The Company hereby notifies ASX under paragraph 708A(5)(e) of the Act that:
(a) the Company issued the shares without disclosure to investors under Part
6D.2 of the Act;
(b) as at 23 October 2009, the Company has complied with the provisions of
Chapter 2M of the Act (other than section 319 in relation to a financial
year ended in the calendar year 2004) as they apply to the Company, and
section 674 of the Act; and
(c) as at 23 October 2009 there is no information:
that has been excluded from a continuous disclosure notice in
accordance with the ASX Listing Rules; and
that investors and their professional advisers would reasonably
require for the purpose of making an informed assessment of:
the assets and liabilities, financial position and performance,
profits and losses and prospects of the Company; or
the rights and liabilities attaching to the relevant shares.
AUTHORISED BY:
Simon Farrell
Managing Director
23 October 2009
For more information contact:
Simon Farrell, Managing Director - CZA
+61 417 985 383 or +61 8 9322 6776
Peter Bacchus/ Alastair Cochran - Morgan Stanley
+44(0) 20 7425 8000
Simon Edwards/ Chris Sim - Evolution Securities
+44(0) 20 7071 4300
Jos Simson/ Leesa Peters - Conduit PR
+44(0) 20 7429 6603
Melanie de Nysschen / Thembeka Mgoduso - Macquarie First South Advisers
+27(11) 583 2000
About CoAL:
Coal of Africa Limited ("CoAL") is an AIM/ASX/JSE listed coal mining and
development company operating in South Africa. CoAL has three key projects
including the 113 million tonne (`mt`) Mooiplaats thermal coal mine, the 656
mt Vele coking coal project and the 1 bn tonne Makhado coking coal project.
The Mooiplaats coal mine commenced production in 2008 and is currently ramping
up to produce 2 mtpa. CoAL`s Vele and Makhado coking coal projects are
expected to start production in H1 2010 and Q4 2011 respectively producing an
initial 2 mtpa rising to a combined annual output of 10 mtpa of coking coal.
Date: 23/10/2009 07:07:00 Produced by the JSE SENS Department.
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