KEH - Keaton Energy Holdings Limited - Capital injection, other measures Release Date: 28/03/2012 14:00:01 Code(s): KEH
KEH - Keaton Energy Holdings Limited - Capital injection, other measures
spur Leeuw Mining & Exploration absorption into Keaton Energy `Fold`
Keaton Energy Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 2006/011090/06)
JSE share code: KEH ISIN: ZAE000117420
CAPITAL INJECTION, OTHER MEASURES SPUR LEEUW MINING & EXPLORATION ABSORPTION
INTO KEATON ENERGY `FOLD`
Keaton Energy continues apace with plans for absorbing into its portfolio
the assets of recently acquired Leeuw Mining & Exploration (Pty) Limited
(LME), says Keaton Energy Managing Director Paul Miller.
In a presentation to media during a site visit to LME`s Vaalkrantz
Anthracite Colliery near Vryheid today, Miller highlighted key steps taken
by Keaton Energy since early 2011 to turn around the under-performing
These have included:
* injecting R65 million in capital to:
- complete development of the colliery`s West Adit;
- acquire urgently needed equipment; and
- pay creditors
* appointing a new mine manager;
* taking over the marketing, payroll and human resource functions,
- better product pricing;
- job security for 700+ employees and contractors; and
- improving industrial relations.
Acquisition of a 74% stake in LME for an effective R64 million in an all-
share transaction concluded early this year gives Keaton Energy:
* in Vaalkrantz, a second operating colliery, augmenting the company`s
own Vanggatfontein operation, brought into production during 2011 to
deliver both metallurgical coal to domestic users and thermal coal,
under contract, to power utility Eskom;
* exploration projects to augment its own advanced Sterkfontein Project,
key amongst which is LME`s Braakfontein Project, which has the
potential to be developed into a 660 000tpa thermal coal producer with
a life of more than 20 years;
* an export foothold through a 200 000tpa RBCT Quattro export
* a broader product range;
* a consequent wider customer base; and
* a major new shareholder in Swiss-based global commodity trader Gunvor
Miller says that, through a strategy combining greenfields exploration and
project development with judicious acquisition, Keaton Energy has attained -
in just five years of existence - its medium-term production target of two
million tonnes a year.
"Our enlarged portfolio, with assets well-placed along the value curve -
together with the prospect of continuing robust markets locally and
internationally for our expanded product range - positions us well to attain
our next medium-term production target of five million tonnes a year."
Keaton Energy reports its results for the year ended 31 March 2012 on or
about 30 May 2012.
Note: Miller`s presentation today can be accessed on the Keaton Energy
Russell and Associates
+27 11 880-3924 (landline)
+27 (0)82 892-8052 (mobile)
All statements in this media release, other than historical facts, that
address exploration activities and mining potential are forward-looking
statements. Although Keaton Energy believes the expectations expressed in
such forward-looking statements are based on reasonable assumptions, such
statements should not in any way be construed as guarantees of future
performance. Factors that could cause developments to differ materially from
those expressed include exploration results, technical analysis and lack of
availability to the company of necessary capital to progress its projects.
The company is subject to specific risks inherent in the exploration and
mining business and general economic and business conditions.
28 March 2012
Date: 28/03/2012 14:00:01 Supplied by www.sharenet.co.za
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