Wednesday, 28 Dec 2011
Coal of Africa has agreed to the sale of the NiMag Group of companies, consisting of Nimag and Metalloy Resources Investments by way of a management buyout.
CoAL considers the NiMag Group asset to be non-core and it has been classified as an asset held for sale.
The directors of NiMag will purchase a 100% interest in the group for BRL 54 million of which 60% is being funded by a combination of equity contributions and bank debt with the remaining 40% being financed by way of an interest bearing vendor financing loan provided by CoAL repayable over four years.
The transaction is expected to be completed by end-February 2012.
Mr John Wallington CoAL CEO said "This is a specialist business that under the current management team will continue to grow and develop over time. He said that our focus at CoAL is on the development of our coking coal and thermal coal businesses. Fast tracking Vele into production and concluding the feasibility study for Makhado are priorities for us. Our management and financial resources are focussed on that."
(Sourced from miningmx.com)
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