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Wescoal re-enters acquisiton deal with Mintirho

11th June 2015

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

  

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JOHANNESBURG (miningweekly.com) – JSE-listed Wescoal Mining has entered into a new agreement with Mintirho Mining, following the lapse of the first, on the acquisitoin of a coal mining right, comprising Portion 2 of the 171 362 ha Vlakvarkfontein farm, near Delmas, in Mpumalanga.

In August, Wescoal Mining had agreed to buy  the mining right, various capital items and access to the resource from Mintirho Mining for R69.39-million, payable in a combination of cash and royalty payments.

Wescoal had already advanced R30.83-million to Mintirho Mining, while the remaining R38.5-million had to be paid in monthly instalments; the first due on June 1.

Mintirho Mining shareholders had to pass a special resolution approving the transfer of the mining right as well as authorise the entering into of the agreement before or on August 15.

Edited by Tracy Klückow
Creamer Media Contributing Editor

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