| Mon 26 Jul 2010, 10:31 | | MMH - Miranda Mineral Holdings Limited - Shareholders and investors are advised |
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MMH
MMH
MMH - Miranda Mineral Holdings Limited - Shareholders and investors are advised
that the Miranda website has been updated with the newsletter for July 2010:
Miranda Mineral Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1998/001940/06)
Share code: MMH ISIN: ZAE000074019
("Miranda" or "the company" or "the group")
Shareholder Newsletter
Shareholders and investors are advised that the Miranda website has been updated
with the newsletter for July 2010:
LETTER TO SHAREHOLDERS
July 2010
Dear Shareholder
As part of our commitment at Miranda to keeping all shareholders fully informed
about events of major importance at the company, I will be writing an informal
newsletter to you from time to time.
It is my sincere hope that through these letters, the Miranda team and I will be
able to answer any questions regarding Miranda and its future that you as a
shareholder may have.
I therefore encourage you to post any questions you may have about Miranda to
the e-mail address at the end of this letter. We will answer all queries and use
a selection of those received in future newsletters.
Regards,
Ron Nel
Chief Executive Officer
Mining operations get underway at Miranda
Undoubtedly, the most significant development in our short five-year history
took place in July. We took the first step to transform MMH`s 100%-owned
subsidiary, Miranda Coal (Pty) Ltd, from an exploration company into an active
mining company. This change was heralded by the arrival on site of the various
machinery required to commence operations at our Sesikhona Colliery in the
northern KwaZulu-Natal (KZN) coalfields.
Sesikhona will be the first open cast Miranda Coal mine to go into production
and will be followed by others in the region in the months that follow. This
major development in the company`s history follows three years of exploration
and identification of viable coal resources in the KwaZulu-Natal (KZN)
coalfields, during which period the following results have been delivered:
KZN coal resources grown from zero to 120 million SAMREC tonnes (mt) and a
further 122 mt in reconnaissance resources;
KZN coal exposure expanded from 8,000ha to over 106,000ha;
KZN coal rights increased from 3 Prospecting Rights (PRs) to more than 30 PRs
and one Mining Rights (MR);
Uithoek and Burnside MR applications and environmental plans accepted;
SAMREC-compliant Competent Person Reports completed for six key coal projects;
Key PR`s granted for expansion projects;
Preparatory work commenced for separate listing of Miranda Coal;
Botswana coal exploration base established; and
Sesikhona MR granted, as well as its feasibility study and mine establishment
completed.
Mining partners for Sesikhona are Stefanutti Stocks Mining Services (SSMS), who
were selected after an intensive review of potential mining partners, was
undertaken by Miranda`s board.
SSMS have begun removing topsoil, terracing the area, constructing haulage roads
and storm water trenches. Recruitment and training of the labour required to
commence with the first tranche of operations, using local people from the
settlement area adjoining the mine, is also moving forward satisfactorily.
The mine is expected to deliver about 70 000 tons of ROM (Run-of-mine) coal a
month for the projected 50-month life span of phase one of the project.
Negotiations for the sale of the anthracite from Sesikhona are now in the final
stage. The area is well serviced with road and rail facilities that will enable
the anthracite buyer to service their local customers, as well as take advantage
of export opportunities.
We are pleased that Miranda Coal has begun the process of unlocking the value of
our first coal project for shareholders, who have supported us through the long
process of exploration to this point. We are confident that other coal projects
will soon follow and add further value.
Separate listing for Miranda Coal
As already announced with our interim results, MMH is considering separately
listing its coal division under the name of Miranda Coal. Sesikhona will serve
as the first project and the future coking coal projects will serve as the
foundation of this activity.
This will unlock the intrinsic value of Miranda Coal, which is not presently
being reflected in the share price, thereby realising value for shareholders.
Structures considered for the transaction included an Initial Public Offering,
reverse listing into an existing, listed "shell" company or merging with another
listed junior coal mining company.
Shareholders potentially stand to benefit in a number of ways. These could vary
according to the final proposal made by the board, but include:
The incorporation of a capital raising component in the transaction to bring
Miranda Coal`s pipeline of near-term production projects on stream, on the basis
of one project a year for five years, the modernisation and development of the
coal logistics infrastructure, and advancing the portfolio of development and
exploration projects up the coal value curve.
This is considered the most efficient way to raise funding as it stands to
incorporate and give recognition to the value that has been created in the coal
portfolio over the years.
MMH, as the listed entity and current holding company, will retain a sizable
holding in NewCoalCo after the capital raising.
Any transaction will create an arms` length, "see-through" value for the coal
assets, which should provide an underpinning of the MMH share price.
The Board will consider, subject to the capital gains tax and other fiscal and
regulatory implications, "passing on" some of its shareholding in NewCoalCo to
MMH shareholders, for instance by means of a dividend in specie.
NewCoalCo will have in place the requisite Board and coal mining operational
expertise to ensure optimisation of its activities.
All shareholders will be notified of significant developments regarding the
listing of Miranda Coal as they occur and regulatory announcements pertaining to
changes are placed on SENS and in relevant media.
Contact us
We welcome any queries from shareholders.
Get in touch with members of the Miranda management team via e-mail, please send
your correspondence to the following address: info@mirandaminerals.com.
You can also visit the Miranda Minerals website at www.mirandaminerals.com.
Centurion
26 July 2010
PricewaterhouseCoopers Corporate Finance Pty Ltd
Date: 26/07/2010 10:31:01 Produced by the JSE SENS Department.
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