Shumba Coal has entered into an agreement with Impact Minerals for the acquisition of four energy (coal) prospecting licences in Serowe.
The aggregate purchase price payable for the Acquisition is US$ 800 000 (BWP 6, 926, 920.00) and is to be discharged by way of the issue and allotment by Shumba Coal to Impact Minerals of US$550 000.00 worth of shares.
A payment of US$50,000 (BWP449, 543.00) cash (non-refundable) payable to Impact Minerals upon execution of the Acquisition Agreement.
Shumba will also make a US$ 2000,000 (BWP 1 737 379) cash payable to Impact Minerals upon the renewal of the prospecting licences and the approval by the Minster of Minerals, Energy and Water Resources.
A statement on Botswana Stock Exchange says the acquisition constitutes a Category 2 transaction in terms of the Listings Requirements and is accordingly not subject to approval by Shareholders.
Shumba Coal is therefore required to increase its stated capital such that it has sufficient shares to fulfill its obligations in terms of the Acquisition Agreement.
The Acquisition consists of four prospecting licences which are held in favour of Icillion Investments (Pty) Limited, a wholly owned subsidiary incorporated in accordance with the laws of Botswana of Impact Minerals.
The four prospecting licenses are PL118/2008, PL120/2008, PL121/2008 and PL097/2010.