Sibanye terminates discussions with WCC
PERTH (miningweekly.com) – ASX-listed Waterberg Coal Company (WCC) on Friday announced that South African miner Sibanye Gold has terminated discussions with WCC around an A$8.5-million loan after the coal developer failed to accept an asset offer.
In September 2015, WCC entered into a nonbinding term sheet with Sibanye under which the South African firm would acquire secured convertible notes in WCC held by Standard Bank of South Africa, and providing working capital of A$8.5-million through a loan that would be subsequently converted into equity within the WCC group.
The deal would have allowed Sibanye the right to a 51% shareholding in the Waterberg group within 18 months of the deal closing and to enter into a coal offtake agreement.
The equity transaction had been subject to a number of conditions, including a detailed due diligence by Sibanye, as well as the South African firm being granted a coal offtake agreement with the Waterberg group.
However, WCC said on Friday that, on February 24, Sibanye submitted a conditional offer to WCC, which was materially different from the equity transaction originally contemplated, and equated to an offer to acquire the Waterberg coal project.
WCC was asked to formally accept the offer on Friday, some 24 hours after the receipt of the offer.
WCC told shareholders that, given the material changes to the nature of the transaction set out in the Sibanye offer, there was insufficient time for a full and considered evaluation of the impact on the Waterberg group, and to engage with stakeholders.
WCC would proceed with discussions with other parties that have indicated a willingness to provide funding and participate in the Waterberg coal project.
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