🕐27.01.11 - 01:27 Uhr
UNIVERSAL MAKES STRATEGIC COKING COAL EXPANSION ACQUISITION
ASX / MEDIA RELEASE
ASX CODE: UNV
JANUARY 27, 2011
UNIVERSAL MAKES STRATEGIC COKING COAL EXPANSION ACQUISITION
Highlights
New farm-in opportunity contiguous to companys Berenice coking coal
project;
Provides additional JORC Inferred resource of 95.5Mt.
Further drilling at Berenice project confirms consistent, thick coal zone.
Universal Coal plc ("Universal") is pleased to announce that it has secured
an additional shallow depth farm-in opportunity contiguous to its Berenice
coking coal project in the Limpopo region of South Africa.
The new Cygnus
project contains an existing JORC resource of 95.5Mt and, as a result,
significantly increases the current Inferred resource over the combined
Berenice and Cygnus projects to 217.5Mt.
The farm, Cygnus 549MS, has a JORC Inferred resource of 95.5Mt, covering an
area of 1,319 hectares, increasing the initially targeted area on the
Berenice project to 8,308 hectares.
Drilling has recommenced on the Berenice project, where coal sequences have
now been intersected in all ten (10) holes completed to date.
As reported
previously, these intersections confirm a consistent 35-40m thick developed
coal zone, with intersection depths ranging from 20- 200m below surface.
The coal zone consists of inter-bedded bright coal and carbonaceous
mudstone.
In addition to the above, the final phase of drilling has also commenced on
the Brakfontein thermal coal project.
The project has to date a defined
JORC resource of 96.6Mt classified as Indicated and a further 29Mt
classified as Inferred.
Terms of Farm-in Agreement
UNV receives an effective 10% in the project upon payment of R1 million
(~AUD150,000) due after a 45 day DD period and lodgement of the MPRDA
section 11 transfer application, ceding the right to a UNV subsidiary.
UNV earns another effective 10% upon an additional R1 million
(~AUD150,000) payment on registration of the section 11 transfer approval.
UNV earns a full 50% on drilling an agreed portion of the Cygnus project to
Measured status within 18 months of signing the acquisition agreement.
All
prospecting rights for coal and other minerals are included in the Cygnus
project acquisition agreement.
UNV also retains an exclusive option to
purchase an additional 24% at market value at any stage after the resource
on Cygnus has been classified as Measured.
This option is open for 3
years.
Universal has been assisted in the expansion of its coking coal resource
base by existing shareholder Natasa Mining Ltd ("Natasa").
The two
companies have entered into an ongoing facilitation agreement whereby
Natasa will be issued six (6) million shares in Universal subject to the
successful consolidation of the Cygnus coking coal asset.
The shares will
be issued in accordance with Listing Rule 7.1 and are to be escrowed for 24
months.
The board of Universal Coal will be providing market updates shortly on the
remaining thermal coal projects which will include production targets on
our first mine to market "Kangala".
www.universalcoal.com
Contact Details
For more information on this announcement, please contact:
Dr Tony Harwood (Chairman)
Ph: +27 12 460 0805
Mr Dan Robinson (Company Secretary -- Australia)
Ph: +61 8 6267 0210
Media
Professional Public Relations
Mr James Harris / Mr Colin Hay
Ph: +61 8 9388 0944
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