| Wed 3 Nov 2010, 14:59 | | VUN - Vunani Limited - Black Wattle Colliery finalises deal on high quality |
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VUN
VUN
VUN - Vunani Limited - Black Wattle Colliery finalises deal on high quality
contiguous reserve
VUNANI LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1997/020641/06)
JSE code: VUN
ISIN: ZAE000110359
Black Wattle Colliery finalises deal on high quality contiguous reserve
Vunani Limited ("Vunani") wishes to draw shareholders` attention to the
following announcement by Bisichi Mining PLC on the London Stock Exchange RNS
this morning. Vunani, through its subsidiary Vunani Capital (Proprietary
Limited) owns a 37.5% stake in Black Wattle Colliery.
"Bisichi Mining PLC ("Bisichi"), the mining company with direct coal mining
operations in South Africa, is pleased to announce that its principal South
African subsidiary, Black Wattle Colliery ("Black Wattle"), has concluded an
agreement with Blue Nightingale Trading 817 (Pty) Ltd ("Blue Nightingale"), to
purchase Run of Mine coal from an open cast reserve of coal contiguous to Black
Wattle`s existing open cast mine. The reserve consists of approximately three
million metric tonnes of high quality low phosphorous run of mine coal with an
average opencast stripping ratio of 2.8 to 1. The agreement with Blue
Nightingale, a black owned and managed mining company, includes the
implementation of a skills transfer programme.
This transaction was concluded immediately after Blue Nightingale had acquired
from the Department of Mineral Resources the relevant mining approvals for a
large portion of the reserve. Opening of the opencast pit is to commence
immediately with first Run of Mine coal expected to be received by Black Wattle
in December 2010.
Andrew Heller, Managing Director of Bisichi, said:
`We are very pleased to be involved with Blue Nightingale in the development of
this reserve, which is a significant addition to our own existing opencast
operations. The conclusion of this agreement will have a significant impact on
Black Wattle`s development and life of mine. The high quality low phosphorous
coal which will be mined from the new reserve can be sold either into the
domestic metallurgical markets at a premium price or the export market and we
look forward to taking advantage of this as production from the reserve
increases in 2011.`"
For further information, please call:
Enquiries:
Vunani Ethan Dube, CEO 011 263 9500
College Hill 011 447 3030
Nick Williams 082 600 2192
Morne Reinders 082 815 1844
Bisichi Mining PLC Andrew Heller +44(0)207415 5030
Sandton
3 November 2010
Independent Designated Adviser
Grindrod Bank Limited
Joint Designated Adviser
Vunani Corporate Finance
Date: 03/11/2010 14:59:01 Produced by the JSE SENS Department.
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