Shumba Coal has entered into an agreement with Impact Minerals for the acquisition of four energy prospecting licences in the southern east side part of Botswana for a consideration of a total of US$800,000, consisting of US$250,000 cash and Consideration Shares equal to US$550,000.
The Acquisition constitutes a Category 2 transaction in terms of the Listings Requirements and is accordingly not subject to approval by Shareholders.
Shumba Coal is required to increase its stated capital such that it has sufficient Shares to fulfill its obligations in terms of the Acquisition Agreement. The further allotment and issue of shares was approved by the shareholders at an annual general meeting of Shumba Coal held on 19th of February 2013 and falls within the ambit of clause 6.18g of the BSE Listing Requirements excluding the requirement to issue a pre-listing statement. More detail is provided in clause 6.1 of this Circular.
The Effective Date is the date upon which Shumba Coal has paid the last of the Consideration Shares to Impact Minerals.
The Acquisition is subject to the fulfillment of the following conditions:
- the completion by Shumba Coal of a due diligence of the mineral concession licenses which has been completed satisfactorily;
- the renewal of the mineral concession licenses; and
- the approval by the Minster of Minerals, Energy and Water Resources approving the transfer of the mineral concession licenses.
The BSE has approved the listing of the Consideration Shares issued in part discharge of the purchase price of the Acquisition pursuant to the terms of the Acquisition Agreement, subject to approval by the Minister of Minerals, Energy and Water Resources approving the transfer of the mineral concession licenses in the name of Shumba Coal.
Source: Press Release.
