KEATON ENERGY HOLDINGS LIMITED - Vaalkrantz Colliery on care and maintenance
KEH 201604290050A
Vaalkrantz Colliery on care and maintenance
Keaton Energy Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 2006/011090/06)
JSE code: KEH
ISIN code: ZAE000117420
('Keaton' or the ‘Company’)
KEATON PLACING ITS WHOLLY OWNED SUBSIDIARY, LEEUW MINING AND EXPLORATION
(PROPRIETARY) LIMITED’S (LME) VAALKRANTZ COLLIERY ON CARE AND MAINTENANCE WITH
EFFECT FROM 1 MAY 2016
The Company refers all shareholders to the entering into of the Sale of Shares and Claims Agreement
with Bayete Energy Resources (Proprietary) Limited (“BER”) on or about 11 February 2016 as
announced on 15 February 2016. There are still a number of suspensive conditions which have to be
met for the sale to become effective, including Section 11 consent from the Minister of Mineral
Resources in terms of the Mineral Petroleum and Resources Development Act, 28 of 2002 (“MPRDA”).
The Company also simultaneously entered into a management agreement with Witbank Mineral
Resources (Proprietary) Limited (“WMR”), a related party to BER for the management of LME up to
and until the Sale of Shares and Claims Agreement with BER becomes unconditional.
Notwithstanding continuous efforts by both LME and WMR to minimise losses exacerbated by the
ongoing global decline in coal prices, force majeure declared on LME by its biggest customer and the
unavailability of water due to the continued drought in the region, LME and WMR jointly decided to
place Vaalkrantz Colliery on care and maintenance with effect from 1 May 2016.
LME has embarked on a Section 189A process for the retrenchment of all employees and is currently
in consultation with all relevant stakeholders.
Johannesburg
29 April 2016
Sponsor
Investec Bank Limited
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