The purpose of this announcement is to provide clarity to Exxaro’s shareholders regarding the announcement by Universal Coal Plc (“Universal Coal”), released on the ASX on20 October 2015, that it has entered into a binding sale of Prospecting Right Agreement (“the sale Agreement”) with Exxaro.
The announcement refers to a transaction concluded in 2012 for R89,7 million. However, the last condition precedent to the sale agreement, namely approval, in terms of Section 11 of the Mineral and Petroleum Resources Development Act 28 of 2002, by the Department of Mineral Resources for the transfer of the prospecting rights from Exxaro Coal Proprietary Limited, a subsidiary of Exxaro Resources Limited, remains outstanding.
The transaction is not material to Exxaro and for clarity is not related to Exxaro’s operating mine, Arnot Coal Mine, which supplies coal to Eskom’s Arnot Power Station.
Universal Coal was obliged to announce this transaction due to their own current corporate actions.
Exxaro is one of the largest South African – based diversified resources companies, with interests in the coal, titanium dioxide, iron ore and energy commodities. www.exxaro.com
Wim de Klerk
Tel: +27 12 307 4848
Mobile: +27 82 652 5142
Absa Bank Limited (acting through its Corporate and Investment Banking Division)