JSE-listed Wescoal has, through its wholly-owned Keaton Energy subsidiary, entered into and executed an agreement to acquire Mbabazini Esther Dhladla’s shares in Neosho Trading – the owner of the Moabsvelden project.
Keaton will acquire the shares, which represent about 7.8% of Neosho’s issued share capital, for R10.5-million.
Following the acquisition, which is anticipated to be by no later than June 30, Wescoal will own 100% of Neosho and, therefore, also the Moabsvelden project.
First coal from Moabsvelden is expected before the end of this year.
Run-of-mine coal produced at the project will be processed through a dedicated coal handling and processing plant at Wescoal’s Vanggatfontein operation, as well as through existing processing capacity at the 5 Seam plant.