4 Aug 2010 13:05
Sable Mining Africa Ltd/ Index: AIM / Epic: SBLM / Sector: Natural Resources
4 August 2010
Sable Mining Africa Limited ('Sable Mining' or 'the Company')
Corporate Update
Sable Mining, the AIM listed resource company, announces that it has strengthened its board through the appointment of Messrs. Andrew Burns and Jeremy Sanford as Finance Director and Executive Director respectively. Andrew Burns will assume his position as Finance Director of the Company on 1 September 2010, while Jeremy Sanford will join the Board immediately. These appointments strengthen Sable Mining's corporate and operational team, utilising the new directors' extensive experience in the mining, construction and logistics sectors in sub-Saharan Africa, and knowledge of the growth company arena, in order to maximise the value potential of the Company's investments.
Mr. Burns has over 20 years of financial experience working across various sectors in the corporate arena. His most recent position was at Central African Mining & Exploration Company plc, where he held the position of Finance Director and played a key role in the expansion of the business and its eventual sale to Eurasian Natural Resources Corporation Plc for c. US$ 950 million. Mr. Burns began his career by training as a chartered accountant with PricewaterhouseCoopers, after which he held a number of director level appointments with private and public companies. His previous directorships include his position as Chief Financial Officer of Empire Online Ltd and Finance Director Luminar plc.
Mr. Sanford was educated in Zimbabwe and South Africa at the University of Cape Town, where he graduated with a law degree and later studied accountancy through UNISA and completed articles with KPMG. He has spent his working life in Zimbabwe and has 27 years of experience in a general management capacity in the transport, manufacturing and mining sectors. He has worked as a consultant to the Company since the start of the year, and was instrumental in appraising and negotiating the Company's investments in Delta Mining Consolidated Limited ('DMC') and Monaf Investments (Private) Ltd, which holds the Lubu coal concession in the Bulawayo Mining District of Zimbabwe ('Lubu').
Sable Mining CEO Andrew Groves said, "I am delighted to welcome both Andrew and Jeremy to the Board. They bring to Sable significant experience and expertise of developing resource companies in Africa, and will be invaluable as we build and advance our portfolio of investments. Andrew, who was a key figure in the development of CAMEC into a circa US$1 billion pan-African mining house, together with Jeremy, who has already been of significant assistance in securing our positions in DMC and Lubu, will be invaluable as we evaluate additional assets and businesses, primarily operating in the coal and iron ore sectors, to build Sable Mining into a major resource investor focussed on sub-Saharan Africa."
As part of Messrs. Burns and Sanford's remuneration package, Mr. Burns has been granted 2,000,000 options in the Company which will be exercisable at the prevailing price on 1 September 2010 and will vest on the first anniversary of the grant and are exercisable for a period of five years. Mr. Sanford has been granted 1,000,000 options in the Company which are exercisable at 28p and will vest on the first anniversary of the grant and are exercisable for a period of five years.
Andrew Rae Burns, aged 46, is or has been a director of the following companies during the previous five years:
| Current Directorships: | Directorships held within the previous five years: |
|
| Central African Mining & Exploration Company plc |
|
| Detox Lab Limited |
|
| Livermore Investments Limited |
|
| Lifeglow Limited |
Jeremy Darroll Stewart Sanford, aged 56, is or has been a director of the following companies during the previous five years:
| Current Directorships: | Directorships held within the previous five years: |
| Stewart Sanford - Close Corporation | Cargo Carriers Int Hauliers (Pvt) Ltd |
| Midnight Star Construction - c.c Corporation | Cargo Management Services (Pvt) Ltd |
| Streamsleigh Investments (Pvt) Ltd | SABOT SA (Pvt) Ltd |
| Someden Investments (Pvt) Ltd | SABOT Properties (Pvt) Ltd |
| Monaf Investments (Pvt) Ltd |
|
There is no further information required to be disclosed in respect of the above appointment pursuant to Schedule Two paragraph (g) of the AIM Rules.
The Company is also pleased to announce that approval has been given by the South African Department of Mineral Resources in the Mpumalanga region to the consummation of the acquisition by Sable Mining of DMC. The main outstanding condition precedent to completion is now receipt of a similar approval from the South African Department of Mineral Resources in the Limpopo region, which the Board hopes shall be forthcoming shortly.
DMC's Reitkeuil project is based in the Mpumalanga region and has an in situ metallurgical and thermal coal resource estimate of 199.9 million tonnes, of which 156.9 million tonnes is in the Measured category and 42 million tonnes in the Indicated category. These figures are based on 237 boreholes drilled over the 2,720 hectare property, with the resource figures calculated to SAMREC guidelines by DMC and audited by The Mineral Corporation, an independent mineral industry consultancy.
A bankable feasibility study on the Reitkeuil project is expected to be completed by November 2010 and will be based on the feasibility study finalised by DMC in September 2009, which was completed to a +20% -20% accuracy for a 3 million tonne per annum Run of Mine operation. Once completed, it is anticipated that the Project will be fast tracked to production.
** ENDS **
For further information please visit www.sablemining.com or contact:
| Andrew Groves | Sable Mining Africa Ltd | Tel: 020 7408 9200 |
| Jonathan Wright | Seymour Pierce Ltd | Tel: 020 7107 8000 |
| Hugo de Salis | St Brides Media & Finance Ltd | Tel: 020 7236 1177 |
| Susie Callear | St Brides Media & Finance Ltd | Tel: 020 7236 1177 |