20th Dec 2007 07:01
Strategic Natural Resources PLC20 December 2007 Strategic Natural Resources PLC ("SNR" or the "Company"; Ticker: (SNRP) SNR subsidiary secures BEE partners ----------------------------------- Strategic Natural Resources PLC announces that its subsidiary, Acharnian MiningCompany Limited ("AML"), has signed a sale and purchase agreement to sell 23 percent. of its interest in Elitheni Coal (Pty.) Limited ("Elitheni Coal"), theholder of the coal prospecting rights over the Elitheni Area, to a broadly basedblack economic empowerment ("BEE") group of investors. The consideration isapproximately UK £4.4 million (ZAR 60.4 million at an agreed exchange rate ofZAR13.6854 : £1), payable in ZAR upon completion, on or before 28th February2008. SNR anticipates that it will recognise a profit on the sale of this share staketo the amount of approximately £3.8 million. The proceeds will be used toincrease the level of drilling on the newly enlarged exploration area and tofund existing working capital requirements. A further 3 per cent. of Elitheni Coal will be sold to a trust representing thelocal community. The Company is in the process of completing this transactionand further updates will be provided once it has been concluded. The completion of the aforementioned transactions is expected to give ElitheniCoal a 26% BEE shareholder base, which is one of the final outstandingrequirements for the granting of the mining licence by the South African Department of Minerals and Energy. Consequently the Board of SNR now anticipates that the Company will meet all of the tests required for Elitheni Coal to be granted a mining licence. Accordingly this is a very significant milestone in the development of ElitheniCoal from being merely a prospective coal resource to becoming a coal-producingmining operation. Elitheni Coal's new BEE partners are African Pioneer Limited ("APL") (21%shareholder) and Christopher Mazizandile Msutu (2% shareholder). APL was formed in 1990 as a private investment company to take advantage of themajor changes about to take place at that time in South Africa. At its earlystages APL, through its wholly owned subsidiaries, engaged in a number ofretail, distribution and logistics businesses in the black townships andcoloured areas. Through a policy of pragmatic and progressive businessmanagement, the company has expanded substantially and now has a largeshareholder base of almost 100 individuals who are predominantly from the blackcommunities of the Eastern Cape. Commenting on the importance of SNR's BEE deal, Jeremy Metcalfe, SNR's ChiefExecutive said, "African Pioneer Ltd is a terrific addition as our BEE partner.I am particularly pleased that Stephen Dondolo, the CEO of APL, will be joiningthe Elitheni Coal Board. Stephen has vast experience in initiating, developingand maintaining strong and profitable relationships with business partners andassociates. Stephen was named South African Entrepreneur of the Year in 2002 andI am sure he will be a great and influential asset in helping us to develop ourclean coal energy related enterprises in South Africa. " For further information contact:Jeremy P. MetcalfeChief ExecutiveStrategic Natural Resources PLCTel: +44(0)1303 874 798 Allan PiperFirst City Financial Public RelationsTel: +44 (0) 20 7242 2666 Rod Venables / Cecil JordaanHB CorporateTel: +44 (0) 20 7510 8600 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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