Centaur Holdings Announces Acquisition of Prospecting Rights for De Roodepoort Coal Project in South Africa
Centaur Holdings Ltd, a global investment holding company with interests and investments ranging from asset management, wealth management, private equity, venture capital, mining and natural resources and agricultural investments is pleased to announce that it has acquired two coal Prospecting Rights through one of its South African subsidiaries owned by Centaur Mining.
Under the terms of a recently executed Sale and Purchase agreement, the Company has acquired the right to develop the Prospecting Rights comprising of the farms De Roodepoort 435 (excluding Portion 3), and Portion 3 of the farm De Roodepoort 435 (collectively "De Roodepoort"), situated in the Magisterial District of Ermelo, Mpumalanga Province, Republic of South Africa, measuring circa 3,258 hectares.
The Company has acquired the Prospecting Rights for an undisclosed sum plus a market related quarterly royalty payment on each tonne of run-of-mine coal mined.
Mine planning works will now commence on the Prospecting Rights and further drilling is planned in the first quarter of 2015. Section 102 and Section 11 Applications have already been lodged with the Department of Minerals and Resources in the Republic of South Africa.
Commenting on the acquisition, Centaur Group CEO Daniel McGowan said:
"The recently completed acquisition of the Prospecting Rights is part of Centaur's strategic plan for its mining division, with a specific focus on high quality export thermal coal. The acquisition further demonstrates Centaur's selective expansion plans in the natural resources sector in South Africa."
De Roodepoort is estimated to have 'in situ' reserves of over 54m tons and a 'life of mine' of over 25 years.
Webber Wentzel acted as Legal Counsel for Centaur for the acquisition and Centaur Asset Management, a wholly owned subsidiary of Centaur, acted as financial advisor for the acquisition. De Roodepoort will be managed by the 'Ventures' division of the Centaur Group.