| Mon 2 Nov 2009, 7:35 | | CZA - Coal Negotiates Contract Extensions With Managing Director And |
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CZA
CZA
CZA - Coal Negotiates Contract Extensions With Managing Director And
Finance Director
Coal of Africa Limited
(previously, "GVM Metals Limited")
(Incorporated and registered in Australia)
(Registration number ABN 008 905 388)
JSE/ASX/AIM Share code: CZA
ISIN AU000000CZA6
("CoAL" or the "Company")
COAL NEGOTIATES CONTRACT EXTENSIONS WITH MANAGING DIRECTOR AND FINANCE DIRECTOR
Coal, the AIM/ASX/JSE listed coal mining and development company operating in
South Africa, is pleased to confirm it has reached in principle agreement with
Managing Director, Mr Simon Farrell, and Finance Director, Mr Blair Sergeant, to
renew their existing employment arrangements.
SIMON FARRELL
Mr Farrell`s original agreement, which commenced on 1 January 2004 and expired
on 30 June 2009, has been renegotiated on the following key terms:
3.5 year term, commencing on 1 July 2009 and expiring on 31 December 2012;
- Annual remuneration of A$550,000, exclusive of superannuation;
Up to a maximum of 50% of annual remuneration as a performance based bonus, at
the discretion of the Board;
- Subject to shareholder approval at the Company`s upcoming Annual General
Meeting on 30 November 2009, 3,000,000 Options for no consideration, exercisable
on or before 30 November 2014 at an exercise price of A$2.74 each, to Simon
Farrell or his nominee, and subject to the following vesting conditions:
- 2,000,000 Options to vest 12 months after grant of the New Order Mining
Right in respect of the Company`s Vele Project; and
- 1,000,000 Options to vest 12 months after grant of the New Order Mining
Right in respect of the Company`s Makhado Project.
BLAIR SERGEANT
Mr Sergeant`s existing agreement commenced on 1 January 2008 and is due to
expire on 31 December 2009. It will be renewed from 1 January 2009 on the
following key terms:
- 3 year term, commencing on 1 January 2009 and expiring on 31 December 2012.
Mr Sergeant has agreed to remain in South Africa for a minimum of the first year
of this term;
- Annual remuneration of A$375,000, exclusive of superannuation;
Up to a maximum of 50% of annual remuneration as a performance based bonus, at
the discretion of the Board;
- Monthly rental allowance of ZAR20,000 whilst residing in South Africa;
2x economy return airfares to/from Perth per annum for Mr Sergeant`s wife and 2
children whilst residing in South Africa;
- Subject to shareholder approval at the Company`s upcoming Annual General
Meeting on 30 November 2009, 2,000,000 Options for no consideration, exercisable
on or before 30 November 2014 at an exercise price of A$2.74 each, to Blair
Sergeant or his nominee, and subject to the following vesting conditions:
1,000,000 Options to vest 12 months after grant of the New Order Mining Right in
respect of the Company`s Vele Project;
- 500,000 Options to vest 12 months after grant of the New Order Mining Right
in respect of the Company`s Makhado Project; and
- 500,000 Options to vest upon completion of the Company`s acquisition of
NuCoal Mining (Pty) Limited.
Authorised by:
Shannon Coates
Company Secretary
2 November 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 1.3 bn tonne Makhado coking coal project
(including the Rio farm swap).
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 2011 respectively producing an initial 2 mtpa
rising to a combined annual output of 10 mtpa of coking coal.
Date: 02/11/2009 07:35:13 Produced by the JSE SENS Department.
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