Como-based Aquila Resources Ltd plans to speed up the commercialisation of its Botswanan coal tenement holdings through a joint venture with South Africa-based private equity fund Jonah Capital Ltd and mining services entity Scharrig Mining Ltd.
Como-based Aquila Resources Ltd plans to speed up the commercialisation of its Botswanan coal tenement holdings through a joint venture with South Africa-based private equity fund Jonah Capital Ltd and mining services entity Scharrig Mining Ltd.
Under the agreement, Jonah and Scharrig will earn an aggregate 50 per cent interest in the Botswana tenements.
An initial interest of 16.67 per cent will be earned by the payment to Aquila of around $6.1 million, with the balance of the interest to be progressively earned by the expenditure of around $12.2 million on an extensive work programme on the Botswana tenements.
The full text of a company announcement is pasted below
Aquila Resources Limited ("Aquila" or the "Company") is pleased to announce today the signing of a Shareholders Agreement between Jonah Capital Limited, Scharrig Mining Limited and the Company. The Shareholders Agreement deals with the creation of a joint venture to accelerate the commercialisation of Aquila's significant coal tenement holdings in Botswana ("Botswana tenements").
Under the terms of the Shareholders Agreement, Jonah Capital Limited and Scharrig Mining Limited will earn an aggregate 50% interest in the Botswana tenements. An initial interest of 16.67% will be earned by the payment to Aquila of US$5mln and the balance of the interest will be progressively earned by the expenditure of US$10mln on an extensive work programme on the Botswana tenements.
Scharrig Mining Limited is a leading African mining services entity listed on the Johannesburg Stock Exchange (stock code SCN), with a market capitalisation of SA R4,5bln. The company contracts its opencast mining and exploration drilling services to many "blue chip" clients across the continent and recently entered the coal operations
arena, through its acquired shareholding in Merafe Coal and the Nkomati Anthracite operation.
Jonah Capital Limited is a private Pan African investment company that focuses on the mining, financial services and infrastructure sectors. Jonah Capital's mission is to create wealth for shareholders by investing in companies with exceptional growth prospects within select sectors in Africa. Jonah Capital embodies an entrepreneurial, opportunistic culture and seeks to achieve long-term relationships with its partners and all its stakeholders.
Commenting on the joint venture, Sir Sam Jonah, Chairman of Jonah Capital Limited, said - "this is an exciting project, not only for the joint venture partners, but also for the development of the Southern African region as a whole. Jonah Capital is excited to be associated with our partners Scharrig and Aquila. Our vision is to create a competitive, globally significant Botswana coal company for the benefit of all stakeholders, including the Botswana government. The partners bring to the project a wealth of expertise, capital, and experience and importantly the political tail wind needed to take this process to completion in as short a time as possible. We see this as a great opportunity for Jonah Capital; a Pan African focused company, totally committed to the development of Africa".
Aquila's Executive Chairman Tony Poli commented that "Aquila is delighted to have attracted Sir Sam Jonah and Scharrig Mining to its Botswana projects. We are confident that with the combination of in-region commercial and technical expertise that our partners bring that we will see a rapid commercialisation of our projects".
