Last checked at 31 Oct 2012 11:44
ANNOUNCEMENT 31 October 2012
RECEIPT OF US$20 MILLION INTO ESCROW FROM BEIJING HAOHUA ENERGY
Coal of Africa Limited ("CoAL" or the "Company") confirms that, in accordance with the agreement with Haohua Energy International (Hong Kong) Co. Limited, a wholly owned subsidiary of Beijing Haohua Energy Resource Co. Limited ("BHE"), US$20 million has been received into the escrow account to be held pending Foreign Investment Review Board ("FIRB") approval (required for all foreign direct investments into Australian companies).
Submission by BHE for FIRB approval took place on 23 October and a decision could be anticipated on or before 22 November 2012, following the standard review period of up to 30 calendar days.
AUTHORISED BY:
John Wallington
Chief Executive Officer
For more information contact
John Wallington | Chief Executive Officer | Coal of Africa | +27 11 575 4363 |
Wayne Koonin | Financial Director | Coal of Africa | +27 11 575 4363 |
Shannon Coates | Company Secretary | Coal of Africa | +61 89 322 6776 |
Sakhile Ndlovu | Investor Relations | Coal of Africa | +27 11 575 6858 |
Jos Simson/Emily Fenton | Financial PR (United Kingdom) | Tavistock | +44 20 7920 3150 |
Chris Sim/Neil Elliot | Nominated Adviser | Investec Bank plc | +44 20 7597 5970 |
Robert Smith | JSE Sponsor | Investec Bank Limited | +27 11 286 7000 |
Charmane Russell/Jane Kamau | Financial PR (South Africa) | Russell & Associates | +27 11 880 3924 or +27 82 372 5816 |
About CoAL:
CoAL is an AIM/ASX/JSE listed coal exploration, development and mining company operating in South Africa. CoAL's key projects include the Vele Colliery (coking and thermal coal), the Greater Soutpansberg Project, including CoAL's Makhado Project (coking coal) and the Mooiplaats and Woestalleen Collieries (both thermal coal).
The Mooiplaats Colliery commenced production in 2008 and is currently ramping up to produce 1.6 Mtpa. The Woestalleen Colliery, acquired through the acquisition of NuCoal Mining (Pty) Limited in January 2010, currently processes approximately 2.5Mtpa of saleable coal for domestic and export markets. The Woestalleen Complex also incorporates three beneficiation plants with a total processing capacity of 350,000 run-of-mine (ROM) feed tonnes per month.
CoAL's Vele Colliery commenced production in Q1 2012. During the initial phase, the operation is targeting 2.7 Mtpa ROM production to produce 1.0Mtpa of saleable coking coal. The Makhado Project, CoAL's flagship project in the Soutpansberg coalfield, is well into the feasibility stage, with a draft Definitive Feasibility Study having been reviewed by the CoAL Board in March 2012. An application for a New Order Mining Right for the Makhado Project was submitted in January 2011.
In May 2012, CoAL acquired the Chapudi coal project and several other coal exploration properties in the Soutpansberg coal basin in South Africa, subsequently renamed the Greater Soutpansberg Project, from the previous owners, including Rio Tinto. The Greater Soutpansberg Project is a consolidation of nine potential coking and thermal coal assets grouped into three proximate regions, namely Mopane, Makhado and Chapudi. The acquisition of these assets strengthens Coal of Africa's position as one of the most substantial holders of prospecting and mining rights for coking coal in South Africa's Soutpansberg coalfield.
The updated resource estimates are presented in detail in the "Independent Technical Statement for Greater Soutpansberg Projects for Coal of Africa Limited, 31st May 2012" ("Technical Statement") prepared by Venmyn Rand (Pty) Ltd ("Venmyn"), which is available on the Coal of Africa website, www.coalofafrica.com.