THE WATERBERG COAL COMPANY LTD - Background to voluntary suspension

Background to voluntary suspension

The Waterberg Coal Company Limited
(Incorporated in Australia)
(Registration number ABN 64 065 480 453)
ASX: WCC | JSE: WCC | ISIN: AU000000WCC9


 Background to Voluntary Suspension

As announced on 16 March 2015, The Waterberg Coal Company Limited (Company) entered into a
trading halt whilst it finalises negotiations with certain banks and funding agencies to effect the funding
required to retire its existing facility with the Standard Bank of South Africa as well as all other
indebtedness of the Company and its controlled entities.

The funding arrangements are also expected to provide the Company with funding for development of
the Export Project and for the Company’s general working capital requirements.

Under the ASX Listing Rules, a trading halt may continue for only two trading days. As such, the Company
today requested that ASX and JSE impose a voluntary suspension of trading in its securities while these
negotiations are being finalised to ensure that no trading in its shares occurs on an uninformed basis.
The Company’s suspension will continue until an announcement is made regarding the availability of the
proposed funding.

As previously announced to the market on 16 March 2015:

    -   in February 2015 the lead manager of the proposed banking syndicate commissioned a
        reputable, international mineral consultancy to be its independent technical expert for the
        production of a due diligence report for the syndicate’s project funding approvals process;
    -   an off take agreement is a condition precedent for the drawdown of any funding to be provided
        by the project financiers;
    -   the Waterberg Coal Project partners have reached agreement in principle with a large
        international power generation utility to be the sole “off taker” of the export quality product
        accruing from the Export Project. The drafting of a legally binding “off-take” agreement is in
        process;
    -   the Waterberg Coal Project partners have reached agreement in principle with an international
        mining and EPC contractor to contribute funding for the Group’s working capital requirements;
        and
    -   subject to completion of satisfactory funding arrangements as contemplated above, the Export
        Project is scheduled to commence production of export quality thermal coal during the 3rd
        quarter of 2016.


Stephen Miller
Executive Director and CEO
The Waterberg Coal Company Limited

20 March 2015


JSE Sponsor
The Standard Bank of South Africa Limited

Registered office:

Level 2, 1 Walker Avenue West Perth, Western Australia 6005
Tel:+61 8 9485 0888
Fax: +61 8 9485 0077

South African office:
Level 1, The Place,
1 Sandton Dr
Sandton, 2146
South Africa
Tel: +27 10 594 2240
Fax: +27 10 594 2253

Contact:
Mr Stephen Miller
Executive Director/CEO

Or

Investor relations
in South Africa:
Lawrie Mackintosh

E-mail:
info@waterbergcoal.com.au


Directors:
Dr Mathews Phosa (Chairman)
Stephen Miller
(Executive Director and CEO)
Lee Boyd
(Director and Company Secretary)


ASX / JSE Symbol: WCC

Date: 20/03/2015 11:06:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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