| Mon 2 Apr 2012, 7:59 | | CZA - Coal of Africa Limited - Conditions Precedent fulfilled for NiMag |
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CZA
CZA
CZA - Coal of Africa Limited - Conditions Precedent fulfilled for NiMag
disposal
Coal of Africa Limited
(Incorporated and registered in Australia)
(Registration number ABN 008 905 388)
ISIN AU000000CZA6
JSE/ASX/AIM share code: CZA
("CoAL or the "Company" or the "Group")
Conditions Precedent fulfilled for NiMag disposal
Further to the announcements on 23 December 2011 and 26 February 2012
relating to the proposed management buyout ("MBO") of Nimag (Pty) Ltd
("NiMag") and Metalloy Resources Investments (Pty) Ltd (together "the NiMag
Group") for a total consideration of R54.0 million in cash ("Purchase
Consideration") and the extension of the date for satisfaction of the
conditions precedent under the applicable agreement from 28 February 2012 to
30 April 2012, Coal of Africa ("CoAL or the Company") is pleased to advise
that the conditions precedent to the disposal of NiMag were fulfilled on 31
March 2012 and accordingly, the MBO took immediate effect.
Payment of R32.4 million representing 60% of the Purchase Consideration,
less costs of up to R0.4 million, are payable to CoAL on or before the
closing date of 10 April 2012. The balance of the Purchase Consideration
will be financed by way of a vendor loan provided by CoAL, with a cession of
40% of the shares in the NiMag Group held by CoAL as security against the
loan. Provision is made for the outstanding balance to be increased if
payment dates are not met.
The loan bears interest at the South African prime overdraft rate less 0.5%,
payable quarterly in arrears. The capital is repayable in 12 equal quarterly
instalments following the 39th month after the date of advance of the ABSA
funding for the MBO or the date of repayment of the ABSA loan in full.
On closing, the requisite share transfer forms and certificates, board
resolutions and other matters ordinarily associated with closing of a
transaction of this nature will be attended to.
As previously advised in the Company`s Registration Document published on 31
October 2011, the NiMag Group asset is considered to be non-core and has
been classified as an asset held for sale.
John Wallington
Chief Executive Officer
2 April 2012
For more information contact:
John Wallington
Chief Executive Officer
Coal of Africa
+27 11 575 7423
Wayne Koonin
Financial Director
Coal of Africa
+27 11 575 6797
Shannon Coates
Company Secretary
Coal of Africa
+61 893 226 776
Sakhile Ndlovu
IR & PR Manager
Coal of Africa
+27 11 575 6858 or 27 83 306 7058
Jeremy Ellis/Chris Sim/Neil Elliot
Nominated Adviser
Evolution Securities
+44 20 7071 4300
Jos Simson/Emily Fenton
Financial PR
Tavistock
+44 207 920 3150
Charmane Russell
Financial PR S.Africa
Russell & Associates
+27 11 880 3924
www.coalofafrica.com
Ruben Govender
Sponsor
J.P. Morgan Equities Limited
+27 11 507 0430
About CoAL:
CoAL is an AIM/ASX/JSE listed coal exploration, development and mining
company operating in South Africa. CoAL`s key projects include the Vele
Colliery (coking and thermal coal), the Makhado Project (coking coal) and
the Mooiplaats and Woestalleen Collieries (both thermal coal).
The Mooiplaats Colliery commenced production in 2008. The Woestalleen
Colliery, acquired through the acquisition of NuCoal Mining (Pty) Limited in
January 2010, currently processes approximately 2.5Mtpa of saleable coal for
domestic and export markets. The Woestalleen Complex also incorporates three
beneficiation plants with a total processing capacity of 350,000 ROM feed
tonnes per month.
CoAL`s Vele Colliery commenced production in Q3FY2012. During the initial
phase, the operation is targeting 2.7Mtpa ROM production to produce 1Mtpa of
saleable coking coal. The Makhado Project, CoAL`s flagship project in the
Soutpansberg coalfield, is well into the feasibility stage, with a DFS
completed. Application for a new order mining right for the Makhado Project
was submitted in January 2011.
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. Upon completion,
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: 02/04/2012 07:59:35 Produced by the JSE SENS Department.
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