24 Feb 2010 07:00
Sable Mining Africa Ltd / Index: AIM / Epic: SBLM / Sector: Natural Resources
24 February 2010
Sable Mining Africa Limited ('Sable Mining' or 'the Company')
Raises stake to 35.99% in South African Coal Company
Delta Mining Consolidated Ltd
Sable Mining Africa Limited, the AIM listed resource investment company, is pleased to announce that, through a wholly owned subsidiary, the Company has raised its interest in South African-based exploration and mining company, Delta Mining Consolidated Ltd ('DMC'), to 35.99%, following the purchase of a further 6.66% interest for a cash consideration of US$6 million. This transaction follows the initial purchase of 29.33% announced on 17 February 2010. Following the most recent purchase, the Company is entitled to appoint two representatives to the Board of DMC.
Sable Mining CEO Andrew Groves said, "We have raised our stake in DMC to increase our exposure to what we believe is an exciting and well defined coal portfolio. We see strong potential in the development of DMC's assets and will actively support a strategy to fast track their development, which should translate into value appreciation."
DMC controls four major coal interests in South Africa and Botswana in established coal producing regions, all with active development programmes in place to raise their current resource base. In South Africa these include the Rietkuil coal deposit, which has short term production potential utilising the current metallurgical and thermal coal resource of 200 million tonnes; the Springbok Flats project, which has in-situ gross tonnages currently modelled at over 2 billion tonnes of metallurgical and thermal coal; and the Limpopo coal project, which has a current provisional gross in-situ tonnage estimate in excess of 135 million tonnes and a resource target of 400 million tonnes of metallurgical and thermal coal. In Botswana DMC has 12 greenfield concession blocks covering 8,682 sq km and straddling known coal bearing sediments in eastern Botswana.
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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 |