Coal of Africa Ltd (CoAL) has completed the sale process of its shares and claims in Mooiplaats coal mine, South Africa, to Mooiplaats Coal Holdings (MCH) for an aggregate purchase price of R179.9 million.
On 2 October 2017, CoAL and its Black Economic Empowerment Partner Ferret Mining & Environmental Services Proprietary Ltd entered into a sale of shares and claims agreement with MCH and Mooiplaats Mining Ltd.On 2 November 2017, CoAL announced that it and Ferret disposed of 100% of their shares in Mooiplaats. CoAL also disposed of their respective claims against Mooiplaats and its wholly-owned subsidiary Langcarel Proprietary Ltd, thermal coal mine.
The completion of the transaction saw the payment of the initial portion of R67 million of the purchase price, with R52 million going to the CoAL Group and R15 million to Ferret in full and final settlement of their equity.
David Brown, CEO of CoAL, commented: “The sale of Mooiplaats Colliery concludes a process that commenced in 2013 and is the final step in CoAL’s five-point turnaround strategy. It is a significant achievement for the company and required coordination and completion of multiple transaction work streams.”
“The funds received will be used to support CoAL’s project pipeline, in particular the development of our flagship Makhado hard coking coal project and/or potentially contribute to the acquisition of a cash generating asset,” Brown continued.
“In addition the sale of Mooiplaats is expected to yield annual overhead savings for CoAL of US$1.4 million, an important factor in CoAL’s strategy of becoming a self-sufficient mid-tier coal miner,” Brown added.
Read the article online at: https://www.worldcoal.com/exploration-and-development/13112017/coal-of-africa-completes-sale-of-mooiplaats-mine/