29 November 2011
BISICHI MINING PLC (“Bisichi” or the “Company”)
Disposal of 49% Shareholding in Ezimbokodweni Mining (Pty) Ltd(“Ezimbokodweni”)
Bisichi Mining PLC (‘Bisichi’),the mining company with direct coal mining
operations in South Africa announces that on 24 June 2011 it disposed of its
49% shareholding in Ezimbokodweni Mining (Pty) Ltd(“Ezimbokodweni”)to Hasty
Shelf Trade and Invest 17 (Proprietary) Limited (“HSTI”). Ezimbokodweni has
contracted to purchase the prospecting right in relation to Mineral Area 2 (a
portion of Mineral Area 1) of the farm Geluk 276, Registration Division JS,
Mpumalanga Province, measuring 919.0666 hectares, and the surface rights in
relation to portion 2 of the farm Geluk 276, Registration Division JS,
Mpumalanga Province, measuring 250 hectares, registered under Deed of transfer
number T80810/89 (the “Pegasus” project). The Pegasus project is currently
owned by BHP Billiton Energy Coal South Africa and is an undeveloped export
quality thermal coal deposit, situated 10km from Witbank contiguous to the
Exxaro Inyanda colliery.
The consideration for the sale of the 49% is R54.2million cash payable to
Bisichi Mining PLC, R12.4m of which (plus accrued interest) relates to
repayment of intercompany loans. The sale of the shares is subject to several
conditions precedent including but not limited to:
1. South African Reserve Bank and Exchange Control Approval
2. Ministerial consent from the South African Department of Mineral Resources
in relation to the transfer of the above mentioned prospecting right to
Ezimbokodweni.
Accordingly, shareholders should note that there is no guarantee that the
transaction will complete. Further information will be provided in due course.
The Company previously recognised the shareholding at a value of £682,000 at 30
June 2011 and recognised a profit/loss of £nil in respect of the six months to
30 June 2011.
Should the transaction complete the proceeds will be used for the further
development of the company.
The Company also notes that Wescoal Holdings Limited has reported that it has
conditionally acquired the 51% shareholding in Ezimbokodweni not previously
owned by Bisichi. Further details on this transaction can be found at [http://
www.investoreports.com/wescoal/news/sens/]
For further information please contact: ?
Andrew Heller, Bisichi Mining PLC 020 7415 5030
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