Coal of Africa Share Discussion Threads

[patio58] 22/9/2014 06:09

Coal of Africa Limited Sale and Purchase Agreement signed for MooiplaatsTIDMCZARNS Number : 1903SCoal of Africa Limited22 September 2014ANNOUNCEMENT 22 September 2014Sale and Purchase Agreement signed for MooiplaatsCoal of Africa Limited ("the Company" or "CoAL") is pleased to announce that it has signed a Sale and Purchase Agreement ("SPA") with a wholly owned subsidiary(1) of Blackspear Holdings Proprietary Limited, for the disposal of the Mooiplaats Colliery ("Mooiplaats") for a gross consideration of ZAR250 million (US$23.47 million) in cash. Upon fulfilment of all conditions precedent including the receipt of regulatory approvals consistent with a transaction of this nature, the consideration will be settled in two tranches, with the first tranche of ZAR150 million (US$14.084 million) expected to be received during the first quarter of CY2015. The second tranche of ZAR100 million (US$9.39 million) is payable on the earlier of 12 months from the payment of the first tranche or 30 November 2015.Blackspear is required to provide CoAL with evidence of funding on or before 31 October 2014, with guarantees in form and substance satisfactory to CoAL by 31 December 2014, pursuant to which Blackspear will commence monthly payments from November 2014 of ZAR2.3 million (US$0.21 million) increasing to ZAR4 million (US$0.375 million) from February 2015 until such time that the conditions with respect to the first tranche payment are met.Mooiplaats, the thermal underground colliery in the Ermelo Coalfield in the Mpumalanga province of South Africa, was deemed non-core by CoAL on 30 June 2013 and placed on care and maintenance from 1 October 2013.The sale of Mooiplaats was one of two remaining priorities under the Company's five-point turnaround strategy. The final outstanding priority is to secure the funding of, and regulatory approvals for the wholly-owned Makhado coking coal project, located in the Soutpansberg coalfield, South Africa.(1) (K2014118416) (PROPRIETARY LIMITED trading as Blackspear Coal.) Subject to completion of the proposed equity fund Amount raise, announced on 26 August 2014, the Company intends to use the expected proceeds of US$64.9 million (GBP38.225 million) together with consideration for the disposal of Mooiplaats primarily as set out below: --------------------------------------------------------- ---------------- To settle the outstanding acquisition consideration US$30 million of the tenements comprised in the Company's Greater Soutpansberg Project. --------------------------------------------------------- ---------------- To implement modifications to the existing plant US$25 million at the Vele Colliery. --------------------------------------------------------- ---------------- To resolve the current contractual exposure resulting US$10 million from the take or pay provisions of the throughput agreement between the Company, Terminal De Carvao Da Matola Limitada and Grindrod Corridor Management Proprietary Limited. --------------------------------------------------------- ---------------- To settle the Investec Bank Limited working capital US$6 million facility in accordance with its terms. --------------------------------------------------------- ---------------- To fund the Company's expected working capital US$17.4 million requirements for the next 18 months. --------------------------------------------------------- ---------------- David Brown, Chief Executive Officer of CoAL, commented:"Following the signing of the SPA for Mooiplaats, CoAL has agreements in place to sell all of its non-core assets identified during the turnaround strategy. On completion of these sales and the proposed equity financing, we will be in a position to unlock the intrinsic value of our coking coal assets in South Africa and create value for all our stakeholders. It has been an extremely challenging environment in which to execute our turnaround strategy. This achievement is testament to the management team, and I look forward to our next chapter of growth."About MooiplaatsMooiplaats contributed a cash loss of ZAR202 million (US$19.23 million) for the year ending 30 June 2013 and as at 31 December 2013, was classified as an asset held for sale with a net asset value of US$19.040 million. The Company has previously written off ZAR1.9billion (US$181.5 million) in impairments on Mooiplaats up to December 2013, and coal prices have deteriorated even further since then.About BlackspearBlackspear is a privately-owned business that is focused on operating and developing a portfolio of coal assets in South Africa. Blackspear's key assets and operations include the Puleng operations in the Middleburg district of Mpumalanga, the Thutsi coal operation in Ermelo and the Overvaal project in Ermelo. The Overvaal project consists of 252 million tonnes of gross tonnes in-situ ("GTIS") and is the resource contiguous to Mooiplaats.For more information contact: Chief Executive David Brown Officer Coal of Africa [phone] Chief Financial Michael Meeser Officer Coal of Africa [phone] Celeste Harris Investor Relations Coal of Africa [phone] Endeavour Corporate [phone] Tony Bevan Company Secretary Services 9100 Company advisors: Financial PR (United [phone] Jos Simson/Emily Fenton Kingdom) Tavistock 3150 Chris Sim/George Price/Jeremy Investec Bank [phone] Ellis Nominated Adviser plc 5970 Charmane Russell/Jane Financial PR (South Russell & Associates +27 11 880 Kamau Africa) 3924 or +27 82 372 5816 Investec Bank Limited is the nominated JSE SponsorAbout CoAL:CoAL is an AIM/ASX/JSE listed coal exploration, development and mining company operating in South Africa. CoAL's key projects include the Vele Colliery (coking and thermal coal), the Greater Soutpansberg Project /MbeuYashu, including CoAL's Makhado Project (coking and thermal coal).This information is provided by RNSThe company news service from the London Stock ExchangeENDAGRDMGMLVLMGDZM

[channel pirate] 16/9/2014 14:44

Been in since 2007 - I'm a glutton for punishment

[patio58] 16/9/2014 14:16

And in again, anyone want to join me ;-)

[patio58] 12/9/2014 12:48

Back in after selling out a few years ago, tiny downside, huge upside potential now & big players prepared to pay 5.5p premium

[fanramptastic mate] 05/9/2014 06:39

I used to be in here 2 years ago in the good old bad old days.

Im also tempted to come back in again, but waiting for the outcome of 2 of my current beauties MXO & CTP.

GLA
fanny

[bossman1978] 01/9/2014 22:04

Just need to get back over £1 now lol

[kirk 6] 30/8/2014 08:45

Speculative Buy Coal of Africa says Robert Tyerman

Bombed-out Coal of Africa (LSE:CZA) is turning the corner in its struggle to eliminate past losses and surmount a raft of problems. The company could soon start creating value for patient shareholders from its two billion tonnes of coal in South Africa’s Limpopo province.

That is the message from chief executive officer David Brown. It follows a $10 million (£6 million) agreement to extricate the fallen AIM star from a costly take-or-pay deal at the Mozambique port of Maputo for coal it could not supply and a £38.25 million placing at a premium priced 5.5p, backed by key investor, Chinese anthracite producer Haohua Energy, and private South African group TMM Holdings.

[warmsun] 28/8/2014 08:01

I was invested here a few years ago and (unfortunately!) buying
regularly at £1 and above. Haven't been near these for two to
three years now, but, with recent news I have started buying back
in again....I hope the worst is now over!

Good luck to all current holders

[dr_ex] 27/8/2014 17:00

escape your imaginary short you have right?

made any money on those micro pharma companies yet? or have they
all gone bust?

[ianio5691] 27/8/2014 14:14

2.5m trade gone through....

[buywell2] 27/8/2014 14:12

You called ?














Another chance to escape stage right

[karmastuartra] 27/8/2014 13:12

Buy well you plonker!

[2bozmo] 27/8/2014 12:38

We should go to the placing price quite quickly I believe.
Generally seems to be the case when placing are at a large premium.

[kirk 6] 27/8/2014 11:50

5p on the bid?

[yinyang888] 27/8/2014 11:08

Buywell never buys well, he missed the boat again!

[karmastuartra] 27/8/2014 11:06

Whats buywell got to Say?

[kirk 6] 27/8/2014 10:12

great news both yesterday and today. This company will turn around
and produce huge upside.

[karmastuartra] 27/8/2014 09:52

Here we go!

[karmastuartra] 27/8/2014 09:08

Market likes it too!

[ianio5691] 27/8/2014 08:56

Looking positive now.....

[wookie77] 27/8/2014 07:15

Hmmm interesting news out the last couple of days. Perhaps the
line
has finally been drawn in the sand and company appears to be
making
a fist of it....very tempted to have a dig again....no pun
intended!

[karmastuartra] 27/8/2014 07:11

Pick the bones out of That
buywell.

[ianio5691] 27/8/2014 06:39

RNS re settlement of un-utilised Transport capacity with
Grindrod.

Another cloud removed from the horizon......

[karmastuartra] 26/8/2014 15:54

Will hold these till the next round of good news,funding secure for
the
Turnaround and tapping into more reserves of coke.