Subiaco-based resource company Comdek Ltd is now able to go ahead with its acquisition of South African company Isicebi Carbon Mining (Pty) Ltd after receiving approval from the Reserve Bank of South Africa.
The acquisition now paves the way for Comdek acquire up to a 70 per cent interest in three coal licences located in the Waterberg region of South Africa, with Isicebi already holding onto a joint venture agreement with two other companies.
Shares in Comdek, which came out of a trading halt this morning, gained 4.5c or 26.5 per cent to 21.5c in morning trade today.
A copy of the Comdek announcement is pasted below
RESERVE BANK APPROVAL: SOUTH AFRICAN COAL ACQUISITION TO PROCEED
The directors of Comdek Limited (Comdek or the Company) are pleased to announce that the Reserve Bank of South Africa (RBSA) has approved the Company's acquisition of Isicebi Carbon Mining (Proprietary) Ltd (Isicebi).
Isicebi is a South African company that has signed a Joint Venture agreement with Lukale Mining Company (Pty) Ltd (Lukale) and Umnotho We Sizwe Group (Pty) Ltd (Umnotho), to acquire an interest in, and to farm in to three coal licences held by Lukale located in the Waterberg region of South Africa.
The approval is subject to certain conditions being met. However, these conditions have been incorporated into an amended Joint Venture agreement between Isicebi, Lukale and Umnotho which has been executed by all parties.
The RBSA approval was the last remaining condition of the transaction to be met. The Company is expected to settle the transaction within the next week.
Highlights of the South African Coal Acquisition as announced to the market on 7 November 2007, 10 March 2008 and 8 April 2008 are:
- Initial JORC Inferred Resource of 415 million tonnes of thermal and coking coal;
- Historical bore data expected to upgrade the status and size of the resource tonnages;
- Properties located close to infrastructure and power stations;
- Properties were previously owned by BHP Billiton and BP Coal and now available due to changes made by the Minerals and Petroleum Resources Development Act;
- Project partner (30%) Lukale Mining Company (Pty) Ltd is a Black Empowerment Enterprise;
- Granted an Eskom Holdings Limited Generation Division vendor number to allow supply of coal to Eskom's new power stations.
