ZYL walks away from Mbila, cancels capital raising
PERTH (miningweekly.com) – South Africa-focused coal developer ZYL has decided not to continue with the acquisition of the Mbila anthracite project in KwaZulu-Natal, cancelling an associated A$5.6-million capital raising.
The announcement comes as ZYL announced in May that it was reviewing its assets to determine their appropriateness for operational mining purposes.
Nonexecutive chairperson Yuzheng Xie said at the time that the aim of the review was to rule out assets that were marginal, high risk or which required considerable additional exploration.
The Mbila project was estimated to have a Joint Ore Reserves Committee-compliant resource of some 125-million tonnes of anthracite.
Under the terms of a revised settlement agreement, ZYL said on Monday that it had agreed to pay the Mbila vendors some A$350 000 by July 3, and a further A$150 000 by September 25.
On the payment of the second tranche, the parties have agreed to release each other from further claims.
Shareholder Prestige Glory has agreed to provide a A$1-million convertible note which would be drawn down in two tranches, providing ZYL with the working capital to make the Mbila payments.
ZYL told shareholders that it would continue to hold its 42.86% interest in the Kangwane Central project, as well as a 70% interest in the Kangwane South project.
The board was also exploring the possibility of acquiring an additional interest in the Kangwane Central project.
Comments
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