11th Nov 2009 12:06
11 November 2009
Strategic Natural Resources PLC (AIM: SNRP)
Shareholdings and Directors' dealings
Strategic Natural Resources PLC ("SNR" or the "Company") announces that following its recent successful placing of 6.5 million of new ordinary shares for cash (the "Placing"), the Board of SNR has been made aware on 10 November 2009 that Coal of Africa Limited ("CoAL") has, subsequent to the 3.5 million new ordinary shares acquired pursuant to the Placing, purchased a further 7,760,000 ordinary shares on 08 November 2009 taking its total shareholding in SNR to 11,260,000 shares, being 15.03 per cent of the Company's issued share capital. In recognition of the significant advantages that the involvement of CoAL is expected to bring to SNR, the Company has been informed that as part of this transaction, Southern Cape Corridor Power (Pty) Limited ("SCCP"), a South African Company 78.5 per cent of which is owned by Southern Cape Corridor Trust in which David Nel and Barry Nel, both directors of SNR are a beneficiary and a trustee respectively, has sold 3,400,000 shares in SNR at 10p per share. SCCP's interest in SNR is now 18.82 per cent.
The Board of SNR is very pleased with this significant new investment in the Company and looks forward to future collaborations with CoAL with a view to initiating exports of coal from SNR's Elitheni Mine at Indwe in the Eastern Cape of South Africa.
The two companies will also be co-ordinating engineering efforts on the development of generic smaller mine mouth independent power projects, such as the one being developed at Elitheni at Indwe by IPSA Group PLC (AIM: IPSA).
The Board of SNR is convinced that the future of electricity network expansion in South Africa is linked to the production of new coal reserves tied to independent power producers and that SNR is well positioned to use its coal for new power plants. It therefore welcomes assistance it may receive from CoAL in accelerating its production plans at Elitheni and exploring other areas of co-operation.
Jeremy Metcalfe, CEO of SNR said: "We're delighted that CoAL has decided to acquire its significant stake in SNR. We continue to have strong shareholder support and remain confident in our ability to build on our existing success. We hope that going forward we can work together in accelerating production at Elitheni."
For further information contact:
The Company:
Jeremy Metcalfe, Chief Executive Officer
Strategic Natural Resources PLC
Tel: +44 (0)1303 874 798
David Nel, Chief Operations Officer
Strategic Natural Resources PLC
Tel: + 27 41 374 0842
Nominated Adviser:
Rod Venables/James Reeve
Allenby Capital Limited
Tel: +44 (0)20 3328 5656
Broker:
Nicholas Malins-Smith/James Wood
Religare Hichens, Harrison plc
Tel: +44 (0)20 7444 0508
Public Relations:
Ana Ribeiro/ Tim Blythe
Blythe Weigh Communications
Tel: +44 (0) 20 7138 3206 / +44 (0) 20 7138 3205
Notes to Editors
About CoAL:
Coal of Africa Limited ("CoAL") is an AIM/ASX/JSE listed coal mining and development company operating in South Africa. CoAL has three key projects including the 113 million tonne ('mt') Mooiplaats thermal coal mine, the 656 mt Vele coking coal project and the 1.3 bn tonne Makhado coking coal project (including the Rio farm swap).
Related Shares:
SNRP.LMCM.L