JOHANNESBURG (miningweekly.com) – JSE-listed Wescoal has bolstered the life of its wholly owned subsidiary Wescoal Mining’s Khanyisa Phase 2 operations through the R4.6-million buyout of Catwalk Investments’ Sarie Marais prospecting right, in Mpumalanga.
The purchase price was excluding value-added tax (VAT) and the deal included a R10-million payment, also excluding VAT, for consent to undertake boxcut mining on the prospecting right area and to use the existing boxcuts.
“The Sarie Marais prospecting right is contiguous to Wescoal’s current Khanyisa operations and the existing boxcuts allow seamless transition into the acquired area exposing higher-grade and lower-cost coal than current production,” the company said in a statement.
The acquisition remained subject to certain conditions precedent, including securing the approval of the Mineral Resources Minister for the transfer of the prospecting right.