Go Back Email this Link to a friend


Wescoal Holdings Limited - Acquisition Of A Mining Right For Intibane Phase 2

Release 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


1. INTRODUCTION

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,
South Africa.

?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
Wescoal Mining.

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
Johannesburg

Date: 07/08/2014 12:41:00 Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                             . The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.


                                        
Email this JSE Sens Item to a Friend.

Send e-mail to
© 2017 SHARENET (PTY) Ltd, Cape Town, South Africa
Home     Terms & conditions    Privacy Policy
    Security Notice    Contact Details
Market Statistics are calculated by Sharenet and are therefore not the official JSE Market Statistics. The calculation/derivation may include underlying JSE data.