Wescoal Holdings Limited - Acquisition Of A Mining Right For Intibane Phase 2Release Date: 07/08/2014 12:41:00 Code(s): WSL
Wescoal Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 2005/006913/06)
JSE Share Code: WSL ISIN: ZAE000069639
(?Wescoal? or ?the company?)
THE ACQUISITION OF A MINING RIGHT FOR INTIBANE PHASE 2
Wescoal Mining (Pty) Ltd (?Wescoal Mining?), a wholly owned subsidiary of Wescoal, entered into an
agreement with Mintirho Mining (Pty) Ltd (?Mintirho Mining) (?the Seller?) on 6 August 2014 to
purchase a Mining Right (?Intibane Phase 2?) from Mintirho Mining (?the acquisition?).
2. RATIONALE FOR ACQUISITION
The acquisition of Intibane Phase 2, which is adjacent to Wescoal?s current Intibane Colliery, will
enable Wescoal to extend the life of Intibane by a further 2.25 million tons and life of mine to the end of
2016. The current Intibane mine infrastructure will be used to mine the reserve.
3. THE MINING RIGHT
?The Mining Area? comprises the area described as Portion 2 of the farm Vlakvarkfontein 213 IR
measuring 170,1362 hectares in extent, situated in the Magisterial District of Delmas, Mpumalanga,
?The Mining Right? means the right to mine for coal in, on and under the Mining Area, held by Mintirho
with reference number MP30/5/1/2/2/476MR to be registered in the Mining Titles Office in respect of
coal in, on and under the Mining Area, which Mining Right is to be transferred from Mintirho to
4. TERMS AND CONDITIONS OF THE ACQUISITION
4.1 Wescoal Mining entered into an agreement to purchase the Mining Right from the Seller for a cash
payment of R7. 98 million inclusive of VAT.
4.2 The acquisition is subject to the fulfilment of inter alia the following conditions precedent :
4.2.1 by no later than 30 September 2014, the approval of the Environmental Management Programme
by the Minister and the execution of the Notarial Contract pertaining thereto; and
4.2.2 by no later than 31 October 2014, the approval by the Minister of the unconditional transfer of the
Mining Right by Mintirho to Wescoal Mining.
5. PRO FORMA FINANCIAL EFFECTS OF THE ACQUISITION
The pro forma financial effect of the acquisition on the earnings, headline earnings, net assets and net
tangible assets per share of Wescoal are below 3% and are considered insignificant.
6. CATEGORISATION OF THE ACQUISITION
This announcement is a voluntary announcement and does not fall within the categories defined by the
JSE Listings Requirements.
Sponsor to Wescoal Legal Adviser to Wescoal
Exchange Sponsors KWA Attorneys
7 August 2014
Date: 07/08/2014 12:41:00 Supplied by www.sharenet.co.za
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