PERTH (miningweekly.com) – Australian coal explorer and developer Acacia Coal has signed an agreement with the vendors of Coalvent to acquire a 74% interest in the Riversdale anthracite colliery, in South Africa.
In terms of the transaction, Coalvent will acquire the project, near Vryheid in KwaZulu-Natal, from mining major Rio Tinto and will vend it into Acacia, giving the ASX-listed junior a 74% interest in the project. The remaining 26% will be held by incoming black economic empowerment partner African Onca.
Acacia will pay A$2.9-million in cash and A$2.6-million in shares, based upon certain milestones, for its 74% interest in the Riversdale project.
Acacia describes the project, which Rio Tinto acquired as part of its 2011 acquisition of Riversdale Mining, as a "premier, underdeveloped, near-term" opportunity, which is "well placed" to serve the local and export markets.
The company stated on Monday that it would prioritise efforts to refresh and update a 2010 bankable feasibility study and to update the project's 2004 Joint Ore Reserve Committee-compliant resource.
Upon completion of the transaction, which is subject to certain conditions, Acacia will restructure its board and management team and will appoint the founding member of Riversdale Mining, Hugh Callaghan, as its MD. Rob Scott, who was formerly in the management team of TSX-listed Uramin, will join the company as FD, while former Riversdale Mining COO Peet Snyders will step in as Acacia COO.
Acacia will also appoint Filippo Faralla, a marketing consultant who held previous roles with Riversdale Mining, as head of marketing and analysis.
Meanwhile, Acacia also announced a $2-million capital raising, the proceeds of which will be used to pay for the acquisition and planned expenditure at the Riversdale project.
Last month, Rio Tinto completed the sale of its 74% interest in the producing Zululand Anthracite Colliery, also a former Riversdale Mining asset, to Menar Holding, for an undisclosed sum.