| Mon 15 Aug 2011, 7:12 | | CZA - Coal of Africa Limited - Update on the acquisition of Rio Tinto`s South |
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CZA
CZA
CZA - Coal of Africa Limited - Update on the acquisition of Rio Tinto`s South
African Coal Assets
Coal of Africa Limited
(Incorporated and registered in Australia)
(Registration number ABN 008 905 388)
JSE Share code: CZA
ASX Share code: CZA
AIM Share code: CZA
ISIN AU000000CZA6
("CoAL" or the "Company")
UPDATE ON THE ACQUISITION OF RIO TINTO`S SOUTH AFRICAN COAL ASSETS
Coal of Africa Limited advises that irrevocable undertakings from the vendor
shareholders have been obtained in terms of the Sale and Purchase Agreement
("SPA") entered into on 26 November 2010 for the acquisition by the Company of
the Chapudi Coal Project and Related Exploration Properties (collectively, the
"Coal Assets") in South Africa`s Soutpansberg coal basin in the Limpopo
province, from joint venture companies held by Rio Tinto Minerals Development
Limited and Kwezi Mining (Proprietary) Limited (collectively, the "Vendors").
The SPA has been extended to allow for the remaining regulatory approvals
required, including Ministerial consent in terms of section 11 of the Mineral
and Petroleum Resources Development Act for the Company`s acquisition of the
Coal Assets, to be obtained. The date for fulfillment of the conditions
precedent, has accordingly been extended from 12 August 2011 until 30 April
2012.
Authorised by
JOHN WALLINGTON
Chief Executive Officer
Bryanston
15 August 2011
JSE Sponsor
Macquarie First South Capital (Pty) Ltd
For more information contact
John Wallington Chief Executive Coal of Africa +27 11 575 7423
Officer
Wayne Koonin Financial Coal Of Africa +27 11 575 6797
Director
Jeremy Ellis/ Nominated Evolution +44 20 7071 4300
Romil Patel/ Adviser Securities
Chris Sim
Melanie de JSE Sponsor Macquarie First +27 11 583 2000
Nysschen/Annerie South Capital
Britz/Yvette
Labuschagne
Jos Simson/Emily Financial PR Tavistock +44 207 920 3150
Fenton
www.coalofafrica.com
About CoAL:
CoAL is an AIM/ASX/JSE listed coal mining and development company operating in
South Africa. CoAL`s key projects include the Vele Colliery (coking coal), the
Makhado Project (coking coal) and the Mooiplaats and Woestalleen Collieries
(both thermal coal).
The Mooiplaats Colliery commenced production in 2008 and is currently ramping up
to produce 2 million tonnes per annum ("Mtpa"). CoAL`s Vele Colliery and Makhado
Project are expected to start production in the first half of 2012 and the first
half of 2013 respectively. These operations are targeted to collectively produce
an initial 1Mtpa ramping up to a combined annual output of 10Mtpa of coking
coal.
In 2010, CoAL completed the ZAR467m acquisition of NuCoal Mining (Pty) Limited
("NuCoal"), a thermal coal producer with assets in South Africa in close
proximity to CoAL`s Mooiplaats Colliery. NuCoal owns the Woestalleen Colliery,
which has a number of off-take contracts in place and processes approximately
2.5Mtpa of saleable coal for domestic and export markets. The Woestalleen
Colliery also incorporates two beneficiation plants with a total processing
capacity of 350,000 run of mine feed tonnes per month.
In November 2010, CoAL agreed to acquire the Chapudi coal project and several
other coal exploration properties in the Soutpansberg coal basin in South Africa
from the previous owners, including Rio Tinto. When completed, the acquisition
of these projects will significantly extend the scale and scope of certain of
CoAL`s existing projects in the region and will more than double the resource of
the existing Makhado Project.
Date: 15/08/2011 07:12:57 Produced by the JSE SENS Department.
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