OPT - Optimum Coal - Acquisition of a further stake in Koornfontein Mines
OPT
OPT
OPT - Optimum Coal - Acquisition of a further stake in Koornfontein Mines
OPTIMUM COAL HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2006/007799/06)
Share code: OPT
ISIN: ZAE000144663
Issuer code: OPT
("Optimum Coal" or "the Company")
ACQUISITION OF A FURTHER STAKE IN KOORNFONTEIN MINES
Optimum Coal has entered into a transaction with Inkwali Engineering Services
(Pty) Ltd ("Inkwali") in respect of the acquisition by the Company of a
further effective 5% stake in Koornfontein Mines for a purchase consideration
of R30 million, increasing the Company`s overall ownership from 91% to 96%.
This transaction was effected by the acquisition of Inkwali`s 10% stake in
Mainstreet 431 (Pty) Ltd, 50.01% controlling shareholder of Siyanda Coal (Pty)
Ltd ("Siyanda"), owner of Koornfontein Mines.
Optimum Coal`s Chief Executive, Mike Teke, said: "This acquisition further
entrenches our position at Koornfontein, which is integral to our strategy of
growing our footprint as a leading producer and exporter of thermal coal in
South Africa."
Koornfontein Mines is a large underground mine adjacent to Eskom`s Komati
power station. The mine has good surface infrastructure and currently produces
around 3.5m tons of thermal coal per annum for export and domestic sales. As
at 30 June 2009, it had a reserve base of 46.5m tons of run-of-mine coal, of
which 30.7m tons were classified as saleable. The estimated life of the mine
is 18 years and it owns 1.5m tons of export entitlement at Richards Bay Coal
Terminal for its own use. Koornfontein Mines is in close proximity to Optimum
Collieries.
Hyde Park
03 May 2010
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 03/05/2010 12:56:01 Produced by the JSE SENS Department.
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