Coal of Africa signs MOU

Company News

Coal of Africa Limited (ASX:CZA) has signed a memorandum of understanding with Qingdao Hengshun Zhongsheng Group Co Limited to acquire up to 34 percent of CZA subsidiary Baobab Mining and Exploration.
 
The preliminary terms are based on an indicative cash acquisition price of approximately US$113.94 million.
 
Baobab is the legal owner of the mining rights for the Makhado Project. The Makhado project is a hard coking coal project located in South Africa’s Limpopo province. 
 
The transaction terms are expected to be completed in the first half of 2016.
 
Coal of Africa recorded a net loss of $8.73 million at 30 June 2015

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