A new resources and reserves technical report update filed by Buffalo Coal “supports positive confirmation that value can be unlocked from the group’s Balgray, Magdalena and Aviemore North mining projects”, says CEO Emma Oosthuizen.
The 2022 technical report presents an update of the October 1, 2012 National Instrument 43-101-compliant Mineral Resources and Mineral Reserves report issued on March 6, 2013.
The update shows proven reserves at Aviemore have increased by 85% to 3.73-million tonnes, probable reserves having decreased by 42.7% to 4.07-million tonnes and total saleable reserves having increased by 1.9% to 7.8-million tonnes.
Further, proven reserves at Magdalena have decreased by 86.4% to 3.22-million tonnes.
Buffalo Coal’s total proven reserves decreased by 71.2% to 6.95-million tonnes and total saleable reserves by 64.8% to 11.02-million tonnes.
Meanwhile, Buffalo and financial institution Investec have concluded negotiations regarding the restructuring of the R46.1-million owed to Investec under the terms of a loan agreement.
Salient terms now agreed to include monthly capital repayments of R250 000 for March to June.
Also, subject to the group having secured R120-million in funding for the development of the Balgray project, an amount of R6.5-million is to be repaid at the earliest of June 30 or the date on which the funding has been secured.
Moreover, there are monthly capital repayments of R1.25-million due for July to August and monthly capital repayments of R2.5-million for September to December.
Also, the final maturity date and date by when the restructuring of the remaining capital balance should be agreed has been extended to December 31.
The group would be allowed to spend R6.5-million on the development of the Balgray project in the absence of any third-party funding until June 30.