TIDMCZA
RNS Number : 5321L
Coal of Africa Limited
02 August 2011
ANNOUNCEMENT 2 AUGUST 2011
UPDATE ON THE ACQUISITION OF RIO TINTO'S SOUTH AFRICAN COAL
ASSETS
Coal of Africa Limited ("CoAL" or "the Company") advises that
the date for fulfillment of the conditions precedent in terms of
the Sale and Purchase Agreement ("SPA") for the acquisition of the
Chapudi Coal Project and Related Exploration Properties
(collectively, the "Coal Assets") in South Africa's Limpopo
province, from joint venture companies held by Rio Tinto Minerals
Development Limited and Kwezi Mining (Proprietary) Limited
(collectively, the "Vendors"), entered into on 26 November 2010,
has been extended from 1 August 2011 until 12 August 2011, to allow
for certain shareholder approvals to be obtained, after which CoAL
hopes to finalise the transaction.
JOHN WALLINGTON
Chief Executive Officer
For more information contact:
John Wallington Chief Executive Officer Coal of Africa +27 11
575 7423
Wayne Koonin Finance Director Coal of Africa +27 11 575 4363
Shannon Coates Company Secretary Coal of Africa +61 893 226
776
Chris Sim/Romil Patel Nominated Adviser Evolution Securities +44
20 7071 4300
Jos Simson/Emily Fenton Financial PR Tavistock +44 207 920
3150
Melanie de Nysschen/ Annerie Britz/ JSE Sponsor Macquarie +27 11
583 2000
Yvette Labuschagne
www.coalofafrica.com
About CoAL:
CoAL is an AIM/ASX/JSE listed coal mining and development
company operating in South Africa. CoAL's key projects include the
Vele Colliery (coking coal), the 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 2 million tonnes per annum
("Mtpa"). CoAL's Vele Colliery and Makhado Project are expected to
start production in the first half of 2012 and the first half of
2013 respectively. These operations are targeted to collectively
produce an initial 1Mtpa ramping up to a combined annual output of
10Mtpa of coking coal.
In 2010, CoAL completed the ZAR467m acquisition of NuCoal Mining
(Pty) Limited ("NuCoal"), a thermal coal producer with assets in
South Africa in close proximity to CoAL's Mooiplaats Colliery.
NuCoal owns the Woestalleen Colliery, which has a number of
off-take contracts in place and processes approximately 2.5Mtpa of
saleable coal for domestic and export markets. The Woestalleen
Colliery also incorporates two beneficiation plants with a total
processing capacity of 350,000 run of mine feed tonnes per
month.
In November 2010, CoAL agreed to acquire the Chapudi coal
project and several other coal exploration properties in the
Soutpansberg coal basin in South Africa from the previous owners,
including Rio Tinto. When completed, the acquisition of these
projects will significantly extend the scale and scope of certain
of CoAL's existing projects in the region and will more than double
the resource of the existing Makhado Project.
This information is provided by RNS
The company news service from the London Stock Exchange
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