KEH - Keaton Energy Holdings Limited - First major project dispatches first coalRelease Date: 06/12/2010 10:07:27 Code(s): KEH
KEH - Keaton Energy Holdings Limited - First major project dispatches first coal
Keaton Energy Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 2006/011090/06)
JSE share code: KEH ISIN: ZAE000117420
First major project dispatches first coal
R255 MILLION CREDIT-APPROVED OFFER OF PROJECT FINANCE RECEIVED FOR COMPLETION OF
Keaton Energy announced today that it has successfully secured a credit-approved
offer of R255 million in project finance to complete its 74%-held Vanggatfontein
coal mining project near Delmas, and has dispatched Vanggatfontein Phase 1`s
first consignment of No 5 Seam metallurgical coal to a domestic customer.
Keaton Energy MD Paul Miller says Phase 1 development has advanced aggressively
since accessing the site in June this year.
"Commissioning is continuing; orders are in, the product specification has been
well received by domestic customers and production and sales will now build up
until January, when full-scale plant operation at a rate of 50 000 run-of-mine
tonnes per month is expected," Miller says.
Capex on Phase 1 to date, excluding sunk exploration costs and surface right
acquisitions, totals R135 million and has been funded from cash reserves.
The project financing debt facility, earmarked for the completion of
Vanggatfontein Phase 2, is in the form of a credit approved offer from Nedbank
Capital following a due diligence process by the institution and approval by its
credit committee. Nedbank Capital was selected as preferred bidder in a
competitive tender process. The project financing is subject to successful
execution of related legal documentation and fulfillment of conditions precedent
typical for transactions of this nature.
Phase 2 will see Vanggatfontein delivering No 2 and 4 Seam steam coal into
Keaton Energy`s supply contract with power utility Eskom, initially at a rate of
50 000 tonnes per month, rising to 200 000tpm by July 2011.
6 December 2010
Investment bank and sponsor
Date: 06/12/2010 10:07:26 Supplied by www.sharenet.co.za
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