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Buffalo Coal files resources and reserves technical report

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World Coal,

Buffalo Coal Corp. has filed a competent person’s report titled ‘Buffalo Coal Dundee Resources and Reserves Technical Report Update National Instrument 43-101’ (the 2022 technical report) dated 4 April 2022 for the Group’s Aviemore Mine’s (Aviemore East, Aviemore North and Balgray) reserve statement and Magdalena Colliery’s reserve statement as at 1 January 2022.

The 2022 technical report is compliant with the Canadian system of reserve and resource reporting as required under the National Instrument 43-101 (NI 43-101) Standards of Disclosure for Mineral Projects and that required by The South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves (SAMREC). The 2022 technical report presents an update of the 1 October 2012 NI 43-101 compliant mineral resources and mineral reserves report issued on 6 March 2013 (the 2012 technical report).

Restructuring of the Investec loan

Further to the company’s announcement dated 3 March 2022. the company and Investec Bank Ltd concluded negotiations regarding the restructuring of the ZAR 46 114 971 owing on the Investec loan, on 30 March 2022. The following salient terms were agreed to:

  • Monthly capital repayments of ZAR 250 000 for March 2022 to June 2022.
  • Subject to the group having secured ZAR 120 million in funding for the development of the Balgray project, an amount of ZAR 6.5 million to be repaid at the earliest of 30 June 2022 or the date on which the funding has been secured.
  • Monthly capital repayments of ZAR 1 250 000 for July 2022 to August 2022.
  • Monthly capital repayments of ZAR 2 500 000 for September 2022 to December 2022.
  • The final maturity date and date by when the restructuring of the remaining capital balance owing should be agreed to be extended to 31 December 2022.
  • The group would be allowed to spend ZAR 6.5 million on the development of the Balgray project in the absence of any third-party funding until 30 June 2022.
  • The reserve bank account and cash sweeping mechanism will continue.

Emma Oosthuizen, the company’s CEO, commented: “The resources and reserves technical report update supports positive confirmation that value can be unlocked from the group’s Balgray, Magdalena and Aviemore North’s mining projects.

“The agreement reached with Investec regarding the restructuring of the Investec loan allows the group to continue with limited scale development of Balgray whilst discussions with existing and potential new investors are ongoing.”

“Balgray is the group’s highest priority project and will extend the group’s anthracite operations by approximately seven years and would need to become operational during 1Q23 to replace the diminishing Aviemore East reserves.”

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