African Energy to sell Botswana coal and power project to SA developer
PERTH (miningweekly.com) – ASX-listed African Energy has signed a term sheet with a South African project developer to divest of its Mmamantswe coal and power project, in Botswana.
Subject to certain conditions precedent, African Energy would sell the Mmamantswe project for an initial sum of $10-million to the developer, which would form a bid consortium to sole fund the preparation and submission of a bid into South Africa’s upcoming Coal Baseload Independent Power Producer (IPP) Procurement Programme, using the Mmamantswe project.
African Energy would be paid this initial fee if the project is shortlisted by the South African Department of Energy.
On receipt of the initial funds, African Energy would transfer ownership of its shares in the Mmamantswe project to the developer.
The ASX-listed company would receive a second payment of $10-million if the project reaches financial close.
African Energy told shareholders on Monday that the conditions precedent included the completion of a due diligence, the delivery of a bank guarantee or the creation of an escrow account for the initial $10-million payment, and the completion of a share sale agreement within 60 days.
The Mmamantswe coal project is estimated to host some 1.25-billion tonnes of coal, and is located 20 km from the South African border. The project has an approved environmental-impact assessment for a coal mining operation of up to ten-million tonnes a year and a 2 000 MW power station.
African Energy would retain full ownership of the Mmamabula West coal and power project, also in Botswana, as well as a 49% interest in the Sese joint venture with First Quantum Minerals.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Multotec, recognised industry leaders in metallurgy and process engineering help mining houses across the world process minerals more efficiently,...
VISIT SHOWROOM
At SMS group, we have made it our mission to create a carbon-neutral and sustainable metals industry.
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
