Home » News » Business » Shumba scores 800 Mt coal field in NE Botswana

Shumba scores 800 Mt coal field in NE Botswana

Publishing Date : 02 March, 2015

Author :

Shumba Coal Limited Managing Director, Mashale Phumaphi

Shumba Coal Limited entered into a binding Sale and Purchase Agreement with Daheng Group Botswana (Pty) Ltd (“Daheng”) for the acquisition of the Mabesekwa Prospecting Licence (PL428/2009) in the north eastern part of Botswana. The transaction is subject to all regulatory approvals being obtained.

In an interview, Shumba Coal Limited Managing Director, Mashale Phumaphi said, “The acquisition of a very low mining cost coal deposit is an excellent outcome for Shumba and is part of our continuing strategy of investing in Botswana based energy projects to supply affordable energy domestically and into the region.”

The estimated in-situ coal resource is 844 million tonnes in accordance with (Australian) JORC Code, predominately contained in one coal seam, with an average seam thicknesses >18m with a flat and consistent profile with the coal found at average depths of 50-60m, to be accessed by open strip mining.

Over 189 boreholes have been drilled and geologically and geo-physically logged, with coal analysis undertaken. The JORC compliant resource statement was issued in September 2012. The report was prepared by Mr. Alan Golding who satisfies the requirements of a Competent Person as defined under the JORC Code.

The acquisition is subject to the approval of authorities in Botswana, including the Minister of Minerals, Energy and Water Resources approving the transfer of the Prospecting Rights. Should the approvals be obtained, Shumba will immediately issue shares to the value of US$2,000,000 to Daheng within 18 months and pay US$2,000,000 cash to Daheng.

Should the Company fail to pay Daheng, it will issue further shares to the value of US$3,300,000 to Daheng; and finally, a final payment of US$2,000,000 cash is payable to Daheng upon commercial production of coal from Mabesekwa

The company released a statement to the effect that applications will be made to list these new shares on the Botswana Stock Exchange (BSE) and the Stock Exchange of Mauritius (SEM), subject to the approval of both. bourses. The Mabesekwa Prospecting License is currently valid and will be up for renewal on the 31st of December 2016. In the period from now till then Shumba Coal intends to complete mine Preliminary Feasibility Studies and associated Environmental Impact Assessments, spending a minimum of P3,200,000 (USD 340,000).



Do you think the courts will help put the UDC, BMD impasse within reasonable time ahead of the 2019 General Election?