29 May 2013

 Dual listed resource development company Aviva Corporation has entered into binding sale documentation to sell its Mmamantswe Coal Project to African Energy Resources for $3.5 million (P29.292 million).

The company announced last month that it had entered into a conditional agreement with African Energy to sell the project. 

According to information from Aviva, the execution of binding sale documentation follows confirmation from African Energy that it was satisfied with the results of the project and completion of fundraising by African Energy to finance the acquisition of the project.

The sale remains conditional on Aviva’s subsidiary Mmamantswe Coal being registered as the 100 per cent holder of the licence under which the project is operated.

Mmamantswe has to acquire 100 per cent of the licence in a separate transaction with Mawana Minerals. All shareholders of Mawana have approved the sale of the licence and it is said that the Minister of Minerals, Energy and Water Resources has been notified and they are waiting for his approval.

The sale of the project also remains subject to Aviva shareholder approval being obtained at a shareholder meeting which is expected to be held in July.

Aviva’s Chief Executive Officer Lindsay Reed is quoted as saying they are pleased with the progress of these transactions.

Aviva is listed in the Australian Securities Exchange and the Botswana Stock Exchange with headquarters in Perth.

In an earlier statement, Mr Reed said Aviva and GDF Suez bid Mmamantswe into the South African power procurement program as a competitive 1000MW integrated power project. However, when it was cancelled in 2010 the board wrote down its investment and has seen no cause to review its holding value.

The company became involved in the Mmamantswe coal project, situated in Kgatleng District, in 2007 and identified 1.3 billion tonne coal resource including a probable reserve of 895 million tons.

African Energy Resources, dual listed in the ASX and BSE is a mining and energy development company with offices in Botswana, Zambia, Perth and Guernsey.

African Energy is currently developing the Sese Integrated Power Project, with an initial 33MW power station planned to commence generation in 2016. ENDS