JOHANNESBURG (miningweekly.com) – JSE-listed Sentula Mining has advised its shareholders that the contemplated R686-million sale of its 49,9% interest in the Koornfontein coal mine, in Mpumalanga, would no longer take place.

In a statement released on Friday, Sentula reported that notwithstanding the successful conclusion of the due diligence investigation carried out by the potential purchases, the company has been notified that the potential purchaser, a consortium, comprising the Africa Commodities Group and the Bravura Group, would not be able to conclude the sale within the agreed time period.

The Sentula board has subsequently elected to terminate the sales agreement, and proceed with a rights offer to raise more than R501-million.

Under the terms of the rights offer, more than 350-million shares would be offered to Sentula shareholders, at a subscription price of 143c per rights offer share, in the ratio of 149 rights offer shares for every 100 Sentula shares held.

Sentula stated on Friday that it would continue with various initiatives to realise value from its coal portfolio, in order to continue to strengthen the company’s balance sheet, improve liquidity in a volatile trading environment, and to provide funding for future growth.

Sentula’s share price closed the day down 13% at R3,60 a share on the JSE, compared with Thursday’s close of R4,14 a share.