SENS 2014/06/24
On 26 November 2013 Wescoal Mining acquired 30% of the total issued share capital of Proudafrique from
Minoscape for R18 million.
A circular was issued to Wescoal shareholders on 9 June 2014 in respect of the acquisition by Wescoal Mining
of the remaining 70% of the total issued share capital of Proudafrique from Minoscape for R25.6 million and a
royalty fee of R3.50 per ton of saleable coal mined at the Elandspruit Mining area. The circular contained a
notice of meeting to take place on 14 July 2014, at which shareholders will be requested to approve the
transaction.
For the acquisition of the 30% [source]
Terms and conditions of the First Minoscape acquisitionOn 26 November 2013, Wescoal Mining agreed to acquire 30% of the total issued share capital ofand all its claims against Proudafrique from Minoscape for R18 million. The purchase price paidwas as follows:4.2.1 R13 million by the issue of 6 500 000 Wescoal ordinary shares at 200 cents per share, within30 days of the First Minoscape effective date;4.2.2 R3 million in cash payable within three days of delivery of the seller’s share certificates inrespect of the sale shares;4.2.3 R1 million payable on 1 February 2014;4.2.4 R1 million payable on 1 March 2014; and4.2.5 the seller gave certain warranties that are customary in a transaction of this nature.All conditions precedent to the First Minoscape acquisition have been fulfilled, it became effectiveat the end of November 2013.
So except if I'm missing something those shares are freely tradeable?
The secondary acquisition (pending) has some limits, but it doesn't seem so bad:
Terms and conditions of the Second Minoscape acquisitionOn 26 November 2013, Wescoal Mining agreed to acquire the remaining 70% of the total issuedshare capital of and all its claims against Proudafrique from Minoscape for R25.6 million and aroyalty fee of R3.50 per ton of saleable coal mined at the Elandspruit Mining Area, payable asfollows:5.2.1 R20.0 million of the purchase price will be paid by the issue of 10 000 000 Wescoal ordinaryshares at 200 cents per share, within 30 days of the Second Minoscape effective date;5.2.2 R5.6 million in cash, within three days of the Second Minoscape effective date, payablefrom existing cash resources;5.2.3 in addition, Minoscape will be paid a royalty of R3.50 per ton of saleable coal mined atElandspruit Mining Area, which royalty will escalate annually with the published producerprice index, payable from existing cash resources, as long as mining takes place;5.2.4 Minoscape shall not during the first 12 months following the issue of the 10 000 000 sharesby Wescoal to Minoscape, directly or indirectly sell more than 200 000 shares during anycalendar month;5.2.5 Minoscape shall not during the second 12 months following the issue of the 10 000 000shares by Wescoal to Minoscape, directly or indirectly sell more than 500 000 shares duringany calendar month; and5.2.6 the seller gave certain warranties that are customary in a transaction of this nature.
Edited by vlam-hobbyist, 30 July 2014 - 12:28 PM.