| Thu 1 Mar 2012, 14:30 | | FMC - Forbes & Manhattan Coal Corp - Forbes coal earns 100% interest in Slater |
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FMC
FMC
FMC - Forbes & Manhattan Coal Corp - Forbes coal earns 100% interest in Slater
Coal Properties with final payment to vendors
FORBES & MANHATTAN COAL CORP.
(Registration number: 002116278)
(External company registration number: 2011/011661/10)
Share code on the Toronto Stock Exchange: FMC
Share code on the JSE Limited: FMC
ISIN: CA3451171050
("Forbes Coal")
FORBES COAL EARNS 100% INTEREST IN SLATER COAL PROPERTIES WITH FINAL PAYMENT TO
VENDORS
TORONTO, ONTARIO - March 1, 2012: Forbes & Manhattan Coal Corp. (TSX/JSE: FMC)
("Forbes Coal" or the "Company") has made its final payment for the Slater Coal
(Pty) Ltd. ("Slater Coal") acquisition. The Company has paid ZAR 140,000,000
(C$18,500,000) to Slater Coal in accordance with the provisions of the amended
purchase and sale agreement entered into between Forbes Coal and Slater Coal on
August 13, 2010 (the "Agreement") (See press release dated September 20, 2010).
"The Company has made significant progress in expanding the operations at the
Magdalena bituminous and Aviemore Anthracite mines over the past 18 months and
we are very pleased with our progress to date," said Stephan Theron, President
and CEO of Forbes Coal. "I would also like to take this time to thank Mr. Peter
and Mr. Norman Slater for all of their assistance and guidance during this
transition period. We wish them all the best in their future endeavors".
Forbes Coal now holds a 100% interest in Slater Coal, which has a 70% interest
in Zinoju Coal (Pty) Ltd. ("Zinoju"). Zinoju holds a 100% interest in the
Magdalena bituminous mine and the Aviemore anthracite mine.
About Forbes Coal
Forbes Coal is a growing coal producer in southern Africa. It holds a majority
interest in two operating mines through its 100% interest in Slater Coal which
has a 70% interest in Zinoju Coal (Pty) Ltd. ("Zinoju"). Zinoju holds a 100%
interest in the Magdalena bituminous mine and the Aviemore anthracite mine in
South Africa (collectively, "the Slater Properties"). The mines have a
substantial resource base and each mine has a projected life span in excess of
20 years. Forbes Coal is in the process of increasing production at both mines
and looks to triple production from 2010 levels in the next three years using
existing infrastructure and capacity. The Company has in-place transportation
infrastructure allowing its coal to reach both export corridors and the growing
domestic coal market. Forbes Coal has a strong balance sheet and an experienced
coal-focused management team.
Please refer to the Company`s NI 43-101 compliant technical report on the Slater
Properties dated March 1, 2011 entitled "Technical Report on Slater Coal and
Subsidiaries, KwaZulu-Natal Province, South Africa", available on the SEDAR
profile of the Company at www.sedar.com. Additional information is available at
www.forbescoal.com.
Johan Odendaal, B.Sc.(Geol.), B.Sc.(Hons)(Min. Econ.), M.Sc. (Min. Eng.), a
director of Minxcon and an independent Qualified Person, as defined in National
Instrument 43-101 has reviewed and approved the scientific and technical
information contained in this release.
Cautionary Note Regarding Forward-Looking Information This press release
contains "forwardlooking information" within the meaning of applicable Canadian
securities legislation. Forwardlooking information includes, but is not limited
to, statements with respect to the anticipated production results at the Slater
Properties, future financial or operating performance of the Company and its
projects, statements regarding the prospects for the business of the Company,
requirements for additional capital, government regulation of the mineral
exploration industry, environmental risks, acquisition of mining licences, title
disputes or claims, limitations of insurance coverage and the timing and
possible outcome of pending litigation and regulatory matters. Generally,
forwardlooking information can be identified by the use of forward-looking
terminology such as "plans", "expects" or "does not expect", "is expected",
"budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words and phrases or
state that certain actions, events or results "may", "could", "would", "might"
or "will be taken", "occur" or "be achieved". Forward-looking information is
subject to known and unknown risks, uncertainties and other factors that may
cause the actual results, level of activity, performance or achievements of the
Company to be materially different from those expressed or implied by such
forward-looking information, including but not limited to: general business,
economic, competitive, foreign operations, political and social uncertainties; a
history of operating losses; delay or failure to receive board or regulatory
approvals; timing and availability of external financing on acceptable terms;
not realizing on the potential benefits of the proposed transaction; conclusions
of economic evaluations; changes in project parameters as plans continue to be
refined; future prices of mineral products; failure of plant, equipment or
processes to operate as anticipated; accidents, labour disputes and other risks
of the mining industry; and, delays in obtaining governmental approvals or
required financing or in the completion of activities. Although the Company has
attempted to identify important factors that could cause actual results to
differ materially from those contained in forward-looking information, there may
be other factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such information will prove to be
accurate, as actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not place undue
reliance on forwardlooking information. The Company does not undertake to update
any forward-looking information, except in accordance with applicable securities
laws.
FOR FURTHER INFORMATION PLEASE CONTACT:
Stephan Theron
President and Chief Executive Officer
+1 (416) 861-5912
Email: stheron@forbescoal.com
Sabina Srubiski
Investor Relations Manager
Email: ssrubiski@forbescoal.com
Johannesburg
1 March 2012
Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
Date: 01/03/2012 14:30:01 Produced by the JSE SENS Department.
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