Wsl - Wescoal Holdings Limited - Termination Of The Proposed Acquisition Of The Release Date: 09/02/2011 13:05:01 Code(s): WSL
WSL - Wescoal Holdings Limited - Termination of the proposed acquisition of the
Wescoal Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 2005/006913/06)
(JSE code: WSL ISIN: ZAE000069639)
("Wescoal" or "the company")
TERMINATION OF THE PROPOSED ACQUISITION OF THE ELANDSPRUIT RESERVE
Shareholders are referred to the announcements on SENS where it was announced
that Wescoal Mining (Pty) Limited, a wholly owned subsidiary of Wescoal has,
subject to certain conditions precedent purchased from South African Mining
Management (Pty) Limited, the shares and loan accounts of its wholly owned
subsidiary Nungu Trading 341 (Pty) Limited ("Nungu"). Nungu owns specified
assets and prospecting rights situated on Portions 4 and 23 Elandspruit 291 JS
The board of Wescoal has decided to terminate this proposed acquisition as a
result of the findings of the SAMREC compliant Competent Persons Report ("CPR").
As part of the CPR, 16 additional boreholes were drilled, full analyses
completed and the following areas of concern identified:
* Raw qualities of certain seams;
* The multiple seam nature of the project; and
* The potential yield of product following beneficiation.
When taking these factors into account, independent opinion reduced the quantity
of a potential coal resource available from the initial 11, 6 million tons to 2,
8 million tons, making the project uneconomical under the current circumstances.
The board will continue to focus on other opportunities and employ capital on
9 February 2011
Date: 09/02/2011 13:05:01 Supplied by www.sharenet.co.za
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