| Tue 26 Jan 2010, 7:28 | | CZA - CoAL - Completion Of Nucoal Acquisition |
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CZA
CZA
CZA - CoAL - Completion Of Nucoal Acquisition
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 NUCOAL ACQUISITION
Further to the Company announcement dated 29 October 2009, CoAL is pleased to
confirm the completion of the acquisition of NuCoal Mining (Pty) Limited
("NuCoal"), following fulfillment of the suspensive conditions to the Share Sale
Agreement ("SSA") signed on 29 October 2009. After a 10% retention and
adjustments to reflect the working capital position (including certain non-
current liabilities) as at 31 December 2009, the final adjusted purchase price
due to NuCoal is ZAR467m. The ZAR65m retention will be withheld in relation to
certain warranties and in accordance with the terms of the SSA.
In accordance with the terms of the SSA, CoAL`s economic interest in NuCoal
commenced on 1 January 2010.
Commenting on the transaction, CoAL`s Managing Director Simon Farrell said:
"The acquisition of NuCoal cements CoAL`s position as an emerging South African
coal producer, transforming the Company into a multi-site producer, well placed
to take advantage of the current strength in, and attractive outlook for, global
coal markets."
NuCoal is a thermal coal producer with assets in South Africa in close proximity
to CoAL`s Mooiplaats mine. NuCoal`s Woestalleen Colliery, which produces 2.5Mtpa
of saleable coal for domestic and export markets, has a number of off-take
contracts in place. NuCoal has two beneficiation plants, one fully operational
mine producing 350kt per month of run of mine ("ROM") coal and has recently
commenced production at a second mine. In addition, NuCoal has a number of
other development projects which CoAL will evaluate in the context of the
Company`s overall corporate strategy.
Azure Capital acted as Corporate Adviser to CoAL on the acquisition of NuCoal.
The acquisition was funded by proceeds of the recent share placement completed
on 30 October 2009, which raised GBP56.9m (before costs), equivalent to ZAR731m
based on prevailing exchange rates at the time. CoAL will apply the remaining
proceeds of the placement to, amongst other things, accelerating capital
expenditure at its Vele coking coal project and general working capital
requirements.
AUTHORISED BY:
Shannon Coates
Company Secretary
Contacts
CoAL
Simon Farrell Tel: +61 (0) 417 985 383
Blair Sergeant Tel: +27 (0) 11 785 4518
Azure Capital Tel: +61 (0) 8 6263 0888
Geoff Ward
Ryan Rockwood
Evolution Securities Tel: +44 (0) 20 7071 4300
Simon Edwards
Chris Sim
Conduit PR Tel: +44 (0) 20 7429 6603
Jos Simson
Leesa Peters
Johannesburg
26 January 2010
Sponsor
Macquarie First South Advisers (Pty) Limited
About CoAL:
Coal of Africa Limited ("CoAL") is an AIM/ASX/JSE listed coal mining and
development company operating in South Africa. CoAL`s key projects include the
Woestalleen Colliery, the 113 million tonne (`mt`) Mooiplaats thermal coal mine,
the 656 mt Vele coking coal project and the 1 billion 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.
In 2010, CoAL completed the ZAR650m acquisition of NuCoal Mining (Pty) Limited
("NuCoal"), a thermal coal producer with assets in South Africa in close
proximity to CoAL`s Mooiplaats mine. NuCoal owns the Woestalleen Colliery, which
has a number of off-take contracts in place and produces 2.5Mtpa of saleable
coal for domestic and export markets. NuCoal also owns two beneficiation plants,
one fully operational mine producing 350kt per month of run of mine ("ROM") coal
and has recently commenced production at a second mine.
Date: 26/01/2010 07:28:01 Produced by the JSE SENS Department.
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