Coal of Africa extends date on Mooiplaats disposal - CNBC Africa

Coal of Africa extends date on Mooiplaats disposal


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CoAL is a coal exploration, development and mining company. PHOTO: DIY Trade

[DATA CZA:CoAL] announced on 6 November 2014 that Blackspear Capital had agreed terms with a financial and operational partner to fund Blackspear’s acquisition of the Mooiplaats Colliery,” it said.

“However, the due diligence being performed by Blackspear’s partner, which was expected to be completed by the end of November 2014, has yet to be concluded. CoAL has agreed to extend the date for Blackspear to meet the conditions precedent in the agreement until 31 January 2015.”

The coal exploration, development and mining company also stated that the transaction is now expected to be completed in the first quarter of 2015.

CEO David Brown, said, “Despite the delay in the completion of the sale of Mooiplaats, both Blackspear and CoAL are confident that the transaction will complete on the terms originally reported thereby closing another chapter in turnaround strategy implemented by management and the Board in 2013.”

(READ MORE: Brown appointed Coal of Africa CEO)

“The overall timing of payment of the purchase price is expected to occur as originally reported with the first payment subject to regulatory approval consistent with a transaction of this nature and the second payment due by no later than November 2015,” he added.