| Thu 25 Feb 2010, 7:05 | | CZA - CoAL - Coal Moves To 100% Interest In Vele Project |
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CZA
CZA
CZA - CoAL - Coal Moves To 100% Interest In Vele Project
Coal of Africa Limited
(previously, "GVM Metals Limited")
(Incorporated and registered in Australia)
(Registration number ABN 008 905 388)
JSE / ASX Share code: CZA
ISIN AU000000CZA6
("CoAL" or the "Company")
COAL MOVES TO 100% INTEREST IN VELE PROJECT
Further to shareholder approval at the Company`s Annual General Meeting held on
30 November 2009 and following satisfaction of the remaining suspensive
condition with the grant of the New Order Mining Right for the Vele coking coal
project as announced on 3 February 2010, CoAL confirms it has today, Thursday,
25 February 2010, issued 5,625,750 ordinary shares ("Shares") to Tranter
Holdings (Proprietary) Limited at a deemed issue price of GBP0.40 in
consideration for the acquisition of a 20% interest in Limpopo Coal Company
(Proprietary) Limited, taking the Company`s interest to 100%.
In addition, 350,000 Shares were also today issued at a deemed issue price of
A$2.00 per Share in lieu of services rendered for rail and port logistics. The
Shares were issued to a nominee of Inkanyezi Logistic Solution CC pursuant to a
Logistics Lead Negotiator Agreement entered into on 18 October 2007 between
Inkanyezi Logistic Solution CC and the Company, pursuant to which the Company
agreed to issue Shares as a success fee for services rendered.
Following admission of the 5,975,750 Shares, the number of Shares on issue will
be 480,514,663.
The Company has also today issued 912,500 options, exercisable at R12.50 each on
or before 30 June 2014, to various employees pursuant to the terms and
conditions of the Company`s Share Option Plan approved by shareholders at the
Company`s Annual General Meeting held on 30 November 2009.
An Appendix 3B for each of the above issues 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 15 February 2010, 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 15 February 2010 there is no information:
a. that has been excluded from a continuous disclosure notice in
accordance with the ASX Listing Rules; and
B. that investors and their professional advisers would reasonably
require for the purpose of making an informed assessment of:
i. the assets and liabilities, financial position and performance,
profits and losses and prospects of the Company; or
ii the rights and liabilities attaching to the relevant Shares.
AUTHORISED BY:
Shannon Coates
Company Secretary
For more information contact:
Simon Farrell, Managing Director
Coal of Africa
+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
Johannesburg
25 February 2010
Sponsor
Macquarie First South Advisers (Pty) Ltd
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 656Mt
Vele coking coal project and the 1bn 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: 25/02/2010 07:05:21 Produced by the JSE SENS Department.
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