Friday, February 1st, 2008
Sentula Mining (previously Scharrig Mining Limited) is pleased to announce that all the conditions precedent to its acquisition of a stake in the Koornfontein Coal Mine have been met and the transaction is now unconditional. Sentula has acquired a 49.998% stake in Koornfontein. The rationale for the transaction is to optimise Sentula’s exposure to high quality operations and to capitalise on the continued strong demand for coal and mining services.
Sentula’s Chief Executive Officer, Robin Berry commented: “We have delivered on our commitment to acquire a significant stake in Koornfontein. This acquisition helps us maximise our exposure in the coal industry and is in line with our strategy to enhance the potential of our coal resources. It is a valuable addition to our recently established coal mining ventures.”
Koornfontein is based in Mpumalanga, and it is a large underground operation adjacent to Eskom’s Komati power station with good infrastructure and accessibility to rail transport. The colliery produces about 4 million tons of coal per year, of which about 1.5 million tons is exported annually under entitlement through Richards Bay Coal Terminal. Additionally coal is supplied directly to Eskom for electricity generation.
In line with the agreement contained in the Merafe Coal joint venture between BEE listed company Merafe Resources and Sentula, 50% of the purchased stake is being offered to Merafe Resources on a first option basis.
For further information visit: www.sentula.co.za