JSE-listed Wescoal has, through its wholly-owned subsidiary, Leeuw Braakfontein Colliery (LBC), entered into a sale of assets with Sitatunga Resources in terms of which LBC will dispose of its LBC assets in KwaZulu-Natal.
The total consideration for the disposal is R103-million and will be paid in cash from funds within the Sitatunga group.
The consideration will be used to reduce the short-term borrowings of the group and to fund strategic growth options.
The value of the net assets that are the subject of the disposal is R92-million and, being nonoperational, there are no profits attributable to the net assets that are the subject of the disposal for the year ended March 31, 2018.