LONDON (Alliance News) - Coal of Africa Ltd Monday said it has signed a sale and purchase agreement for the disposal of the Mooiplaats Colliery in South Africa.
The company has signed the deal with a wholly-owned subsidiary of Blackspear Holdings Proprietary Ltd for the disposal of the colliery for a consideration of ZAR250 million.
The acquisition consideration is to be settled in two tranches, Coal of Africa said, with the first ZAR150 million portion to be paid in the first quarter of 2015 and the second tranche payable 12 months after this or by November 30, 2015.
Coal of Africa said the sale of Mooiplaats was one of the two remaining priorities under its five-point turnaround strategy. The only remaining target to resolve for the company is the funding of, and regulatory approvals for, the Makhado coking coal project in South Africa, it said.
"Following the signing of the sale and purchase agreement for Mooiplaats, Coal of Africa has agreements in place to sell all of its non-core assets identified during the turnaround strategy. On completion of these sales and the proposed equity financing, we will be in a position to unlock the intrinsic value of our coking coal assets in South Africa and create value for all our stakeholders," said Coal of Africa Chief Executive David Brown.
Coal of Africa shares were up 11% to 3.21 pence on Monday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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