Bisichi Regulatory News (BISI)

25 Apr 2005 06:00

25 April 2005 BISICHI MINING PLC Joint venture acquires 12 million tonnes of new open cast coal reserves Bisichi Mining PLC ("Bisichi Mining"), the LSE listed mining investmentcompany, announces that on 20 April 2005 it formed Ezimbokodweni Mining (Pty)Limited ("Ezimbokodweni"), a South African registered joint venture companywith Endulwini Resources (Pty) Limited ("Endulwini"), Bisichi Mining's existingpartner in Black Wattle Colliery (Pty) Ltd ("Black Wattle") and that on 21April 2005 Ezimbokodweni signed an agreement with Ingwe Collieries (Pty)Limited ("Ingwe"), a wholly-owned subsidiary of BHP Billiton, for the purchaseof the Pegasus Coal Reserve ("Pegasus"), an approximately 12 million tonnereserve located in the Witbank coalfield of Mpumalanga, South Africa.The acquisition of Pegasus by Ezimbokodweni, a black empowered company owned51% by Endulwini and 49% by Bisichi Mining, is subject, inter alia, to thefinalisation of a long term coal supply agreement between Ezimbokodweni andIngwe by 31st May 2005 and the conversion of the existing old order prospectingrights to new order prospecting rights under the South African Minerals andPetroleum Resources Development Act 2002 by 30th April 2006. Subject to thereceipt of these commercial and regulatory approvals, Ezimbokodweni expects tocommence mining at Pegasus in mid-2007.An initial deposit of approximately ZAR 5 million will be paid by Ezimbokodwenito Ingwe on the completion of the coal supply agreement and a furtherapproximately ZAR 46 million will be paid to Ingwe on the conversion of theprospecting rights.Commenting on the new joint venture and the acquisition of Pegasus, BisichiMining Chairman Michael Heller said:"The Pegasus Reserve contains high quality low sulphur coal and is ideal foropen-cast production, a low-cost, high-yield mining method. This is asignificant transaction because it shows that the business model we haveestablished at Black Wattle can be replicated. With our group's successfulmining track record, financial reputation, proven management skills,empowerment credentials and the strong long-term relationships we haveestablished in South Africa, we are beginning to see strong opportunities forgrowth; Ezimbokodweni and Pegasus are excellent examples of that." END For further information, please call:Andrew Heller/Tom Kearney, Bisichi Mining 020 7415 5000Christopher Joll, MJ2 020 7491 7776ENDBISICHI MINING