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Belvedere acquires 82.58% of outstanding Buffalo Coal shares

15th June 2022

By: Donna Slater

Features Managing Editor and Chief Photographer

     

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JSE- and TSX-V-listed coal miner Buffalo Coal reports that Belvedere Resources has acquired, from Resource Capital Fund, 347.94-million common shares – totalling $540 000 at $0.001552 apiece – in the capital of Buffalo Coal on June 14.

Buffalo Coal holds a majority interest in two South African operating mines through its 100% interest in Buffalo Coal Dundee – a South African company which has a 70% interest in Zinoju.

In turn, Zinoju holds a 100% interest in the Magdalena bituminous mine, the Aviemore East anthracite mine and the Balgray and North Adit anthracite projects in South Africa.

Together with the transaction – which took place by private agreement between Belvedere and Resource Capital Fund – Belvedere also assumed a $27-million convertible loan following a convertible loan agreement between Resource Capital Fund and Buffalo Coal. Belvedere acquired the loan for $2-million.

The loan, with a maturity date of June 30, 2023, is optionally convertible by Belvedere into common shares in the capital of Buffalo Coal at the conversion rate of C$0.0469 a common share.

After the transaction, Belvedere, which did not own any common shares in Buffalo Coal, will own 82.58% of the issued and outstanding common shares of Buffalo Coal on a partially diluted basis.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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