Coal of Africa Limited, has announced the completion of the sale of Mooiplaats colliery.
On 2 Oct, CoAL and its wholly-owned subsidiary, GVM Metals Administration (South Africa), as well as its black economic empowerment partner Ferret Mining & Environmental Services had entered into a sale of shares and claims agreement with Mooiplaats Coal Holdings and Mooiplaats Mining.
Under the terms of the agreement, CoAL and Ferret disposed of 100% of their shares in Mooiplaats and the CoAL Group disposed of claims against Mooiplaats and its wholly owned subsidiary Langcarel, the owner of the Mooiplaats thermal coal colliery. CoAL said that all conditions precedent had been fulfilled or waived and the sale of the Mooiplaats shares and claims for an aggregate purchase price of R179.9m had been implemented. The completion of the transaction resulted in:
- the payment of the initial tranche of R67.0 million of the purchase price being:
* R52.0 million to the CoAL Group
* R15.0 million to Ferret in full and final settlement of its equity. CoAL said the balance of the R112.9m purchase price would be settled in not more than 10 quarterly instalments, with the first deferred payment anticipated to be due in August 2018, nine months after the closing of the transaction.
At 9:53am: (LON:CZA) Coal of Africa Ltd share price was -0.37p at 2.63p