[miningmx.com] – COAL of Africa (CoAL) said it had concluded agreements to sell 26% of its Makhado coking coal prospect in South Africa’s Limpopo province to a group of community based trusts and property developer, Mike Nkuna.
CoAL said in an announcement to the JSE that its BEE partners – the Makhado Colliery Community Development Trust, Nkuna’s Yoright Investments, and a community trust to be formed by Nkuna – had two years to raise finance for their investment.
The amount to be raised had yet to be finalised as it was subject to a due diligence as well as negotiations with the company, it said. Nkuna’s Yoright led consortium would own 6% of Makhado which would be held through Baobab Mining & Exploration.
“The acquisition of 26% of the Makhado Project by BBBEE [broad-based black economic empowerment] parties is a critical step to obtaining the Makhado Project mining right,” said David Brown, CEO of CoAL.
“The Makhado colliery will be the first of its type in the Soutpansberg and the company
anticipates that the relevant regulatory approvals will be granted in due course,’ he said.
