Shareholders in Aviva Corp. Ltd. have voted in favour of selling the 1.3 billion t Mmamantswe coal project in Botswana to African Energy Resources Ltd., for an estimated AU$ 3.5 million.
The vote of shareholders was the last condition precedent that needed to be satisfied in order for the sale to proceed.
Aviva announced in April that it had entered into a conditional agreement with African Resources Ltd., to sell the Botswana based Mmamantswe coal project
The announcement comes shortly after Aviva’s wholly owned subsidiary, Mmamantswe Coal Ltd., became the registered holder of 100% of the prospecting license under which the Mmamantswe coal project is operated. This paved the way for the sale and takeover of the Mmamantswe coal project to be completed.
The coal project is located 70 km north of the Botswana capital, Gaborone, and is on the South African border. Aviva identified a large coal resource of 1.3 billion t, including a probable ROM reserve of 895 million t.
A study completed by A&B Mylec Pty Ltd in February 2011 demonstrated that the project could yield two products streams, specifically 200 million t of export grade thermal coal and an additional 100 – 150 million t of domestic power coal capable of supporting a 300 MW domestic power plant with a mine life of 60 years.
On completion of final transaction papers, African Energy will secure the full rights to 3.8 billion t of coal in Botswana, while maintaining the company’s working capital at approximately AU$ 6 million.
Proactive Investors said, in a statement, that, “[African Energy] will now broaden its project portfolio. It already owns the Sese coal mine, which is poised to be one of the largest and lowest cost coal producers in Africa, with ready access to transport infrastructure. The addition of Mmamantswe gives African Energy multi-development opportunity.”
Enhanced sector development
Aviva’s CEO, Lindsay Reed, said, ‘Aviva believes consolidation of coal resources in Botswana is important for the development of the coal sector. The transaction […] enhances the sector development for African Energy and Botswana.”
Adapted from press release by Samuel Dodson
Read the article online at: https://www.worldcoal.com/coal/11072013/sale_of_botswana_coal_project_completed_263/