Johannesburg - Coal of Africa (CoAL) announced on Monday that all conditions for the acquisition of Uitkomst Colliery Proprietary Limited from the precious metals producer, Pan African Resources PLC, had now been fulfilled.
This follows Uitkomst Colliery having entered into a supply of coal agreement on terms acceptable to CoAL. In April, CoAL entered into an agreement with Pan African to acquire 100 percent of the shares and claims in Uitkomst Colliery for a purchase price of R275 million. Uitkomst Colliery is a high grade thermal export quality coal deposit with metallurgical applications situated in the Utrecht coalfields in KwaZulu-Natal, owned by Pan African's subsidiary, Pan African Resources Coal Holdings.
CoAL said as a result, the effective date of the implementation of the transaction would be June 30, when CoAL will take over ownership, control and management of Pan African Resources Coal and the Uitkomst Colliery. "We look forward to incorporating the Uitkomst Colliery into CoAL, which we believe represents a transformative opportunity to provide cash flow to support CoAL as the Company continues to progress its flagship Makhado project," CoAL's chief executive, David Brown said.
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Application will be made for 261,287,625 new ordinary shares to be admitted to trading on the AIM market of the London Stock Exchange in respect of the shares to be issued to Pan African Resources PLC. Admission to trading on AIM is expected to become effective on or around June 30. The new ordinary shares will rank pari passu with the Company's existing ordinary shares of nil par value. Application for quotation of the new ordinary shares will also be made to the Australian Securities Exchange and the Main Board of the Johannesburg Stock Exchange.
AFRICAN NEWS AGENCY