JSE-listed Wescoal has, through its Keaton Mining subsidiary, entered into two indivisible memoranda of agreement for the purchase of immovable property from Johan Louis Venter Testamentere Trust (JLV Testamentere Trust) and Andries Schoeman Brakfontein Boerdery (ASB Boerdery).
Keaton will acquire the remaining extent of Portion 8 of the Farm Vanggatfontein 251 and the remaining extent of the Farm Vanggatfontein 251, respectively.
The effective date of the acquisitions is anticipated to be no later than June 30.
Wescoal owns the mineral rights of Farm Vanggatfontein, in Mpumalanga, and these acquisitions will result in Wescoal acquiring the surface rights of Farm Vanggatfontein. Wescoal does not intend to continue the farming operations on Farm Vanggatfontein but will use the properties to expand its Vanggatfontein colliery’s mining operations.
The acquisitions allow Wescoal access to additional mining faces for the Vanggatfontein colliery, which enables the opportunity for improved consistency of coal qualities.
This is in line with Wescoal's stated intentions to extend and optimise its asset base and the acquisitions form part of the integrated development plan for the Vanggatfontein complex.
Keaton will acquire the immovable property of the Farm Vanggatfontein from the sellers for a total purchase consideration of R63.25-million, which will be funded from internal cash and existing debt facilities.
The acquisitions are subject to Wescoal finalising the refinance of its existing credit facilities by June 30.