Department of Mineral Resources (DMR) has granted Ministerial approval in terms of Section 11 of the Mineral and Petroleum Resources Development Act (MPRDA) for the ownership transfer of Glisa and Eerstelingsfontein mining rights to North Block Complex Proprietary Limited (NBC), a subsidiary of Universal Coal Plc (Universal) on the 3 August 2018.
In March 2018, NBC entered into a sale and purchase agreement (SPA) with Exxaro Coal Mpumalanga Proprietary Limited and Exxaro Coal Proprietary Limited (together Exxaro, being the vendors) for the acquisition of assets that comprise the North Block Complex (the acquisition).
The acquisition is progressing well and has already received regulatory and statutory approvals in terms of the Competition Act No. 89 of 1998.
The following suspensive conditions are still outstanding and Universal will update shareholders on any progress made regarding:
The granting of the S11 is another step in propelling the company to achieving their committed strategy of producing 10 million tpy of saleable product to market.
Universal’s Chief Executive Officer Tony Weber commented: “The S11 Approval is an important milestone in Universal securing the North Block Complex and it brings us a step closer to completing the acquisition. As we have stated previously, NBC will add materially to Universal’s growing production profile and will give the company greater exposure to high margin export markets in the long-term. These are outstanding assets, and we are looking forward to completing the transaction.
“Coal markets and pricing are currently favourable and Universal continues to benefit from strong sector tailwinds.”Read more