GABORONE, Botswana--(BUSINESS WIRE)--Shumba Coal Limited (“Shumba” or the “Company”) is pleased to announce that it has entered into a binding Sale and Purchase Agreement with Daheng Group Botswana (Pty) Ltd (“Daheng”) for the acquisition of the Mabesekwa Prospecting Licence (PL428/2009) in the north eastern part of Botswana some 60km south-west of the town of Francistown and 40km west of Tonota/Shashe.
Shumba’s Managing Director, Mashale Phumaphi said, “The acquisition of a very low mining cost coal deposit is an excellent outcome for Shumba and is part of our continuing strategy of investing in Botswana based energy projects to supply affordable energy domestically and into the region.”
The estimated in-situ coal resource is 844 Mt in accordance with (Australian) JORC Code, predominately contained in one coal seam, with an average seam thicknesses >18m with a flat and consistent profile with the coal found at average depths of 50-60m, to be accessed by open strip mining. Over 189 boreholes have been drilled and geologically and geophysically logged, with coal analysis undertaken. The JORC compliant resource statement was issued in September 2012. The report has been prepared by Mr Alan Golding whom satisfies the requirements of a Competent Person as defined under the JORC Code.
The acquisition is subject to the approval of the relevant authorities in Botswana including the Minister of Minerals, Energy and Water Resources approving the transfer of the Prospecting Rights. Should the approvals be forth coming then Shumba will:
1. Immediately issue shares to the value of US$2,000,000 to Daheng;
2. Within 18 months pay US$2,000,000 cash to Daheng, failing this issue further shares to the value of US$3,300,000 to Daheng; and
3. A final payment of US$2,000,000 cash is payable to Daheng upon commercial production of coal from Mabesekwa.
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Shumba Coal is a Botswana Stock Exchange and Stock Exchange of Mauritius listed junior mining Company whose focus is the acquisition and development of highly prospective energy projects in Botswana.