Terms and conditions of the Second Minoscape acquisition
On 26 November 2013, Wescoal Mining agreed to acquire the remaining 70% of the total issued
share capital of and all its claims against 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, payable as
follows:
5.2.1 R20.0 million of the purchase price will be paid by the issue of 10 000 000 Wescoal ordinary
shares 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, payable
from existing cash resources;
5.2.3 in addition, Minoscape will be paid a royalty of R3.50 per ton of saleable coal mined at
Elandspruit Mining Area, which royalty will escalate annually with the published producer
price 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 shares
by Wescoal to Minoscape, directly or indirectly sell more than 200 000 shares during any
calendar month;
5.2.5 Minoscape shall not during the second 12 months following the issue of the 10 000 000
shares by Wescoal to Minoscape, directly or indirectly sell more than 500 000 shares during
any calendar month; and
5.2.6 the seller gave certain warranties that are customary in a transaction of this nature.
......Bye Bye....
