[miningmx.com] – COAL of Africa (CoAL) has agreed to sell a 26% stake
in the Chapudi coking coal project, currently being acquired from Rio Tinto for about
$75m, to Rothe Investment Properitary, a black economic empowerment group.
The structure of the deal allows for Rothe to take the stake in CoAL’s subsidiary,
Keynote Trading & Investment 108 Proprietary, which will house the Chapudi project
and associated exploration properties.
Chapudi comprises both thermal and coking coal development projects and will
provide CoAL with an estimated 1 billion tonnes of coal resource of which 90 million
tonnes (Mt) is measured, 220Mt indicated and 730Mt inferred. Chapudi is contiguous
with CoAL’s Makhado Coking Coal Project.
“We are very pleased to have made further progress towards the development of our
asset portfolio in the Limpopo region,” said John Walllington, CEO of CoAL.
Rothe is owned by Terracotta Processing (30%), Vibrant Veterans Minerals Resources
(30%) and King Makhado Resources, a company representing local communities in the
Limpopo province.
Rolfe director and well-known black businessman, Romanu Mashudu, said: “We are
delighted to be working with Coal of Africa in the Limpopo Province and look forward
to developing our project whilst being mindful of our commitment to environmental
and resource stewardship, economic and social responsibilities and, more importantly,
that we mine with the consent of the public and the communities in which we will be
operating.”
Completion of the Chapudi Coal Project acquisition remains subject to the
fulfillment of the conditions precedent by 30 April 2012, including section 11 approval
of the transfer in terms of the MPRDA and South African Reserve Bank exchange
control approval for, inter alia, payment of the purchase price.
