The sale of the Mmamantswe coal project has made further progress. Aviva Corp. has announced its wholly owned subsidiary, Mmamantswe Coal Ltd., is now the registered holder of 100% of the prospecting license under which the Mmamantswe coal project is operated.
Aviva announced in April that it had entered into a conditional agreement with African Resources Ltd., to sell the Botswana based Mmamantswe coal project for AU$ 3.5 million. By acquiring 100% of the license, Aviva has satisfied one of two outstanding conditions precedent to the sale of the Mmamantswe project.
The acquisition of the license follows ministerial approval from the Botswana Government.
Acquiring the license was the subject of a separate transaction with Mawana Minerals Ltd., the details of which were announced in early May. Under the transaction, Aviva will make a further payment of US$ 270,000 to Mawana, following an initial payment of US$ 30,000.
Aviva entered into binding sale documentation in late May 2013. The only condition precedent to the sale, which remains outstanding, is Aviva shareholder approval at a meeting scheduled for 9 July.
Aviva’s CEO, Lindsay Reed, said, “Aviva is pleased to obtain ministerial approval satisfying another condition precedent to the sale of the Mmamantswe coal project, and completing the purchase transaction with Mawana. Aviva believes consolidation of coal resources in Botswana is important for the development of the coal sector. The transaction […] enhances the sector development for African Energy and Botswana.”
Adapted from press release by Samuel Dodson.
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/05072013/sale_of_botswana_coal_project_nears_completion_254/