African Energy Resources Ltd and Asenjo Energy have executed a binding Sale Agreement under which African Energy has agreed to acquire the 2.4 billion tonne Mmamabula West Coal Project in south‐east Botswana for cash consideration of USD $2.5M, subject to certain conditions.
The Mmamabula West Coal Project is approximately 100km north of Gaborone, and 50km west of the railway line between Gaborone and Francistown. It has been delineated by 87 holes drilled by Asenjo between 2008 and 2011, plus 52 historical drill holes drilled before 2006.
African Energy will pay an initial USD $1 million to Asenjo once the transfer of title of the relevant prospecting licence has been approved, and a further USD $1.5 million once a retention licence has been granted over the project.
A preferred area of approximately 25km2 within the Indicated Resource contains higher quality coal that can produce a 6,100 kcal/kg export product at yields of 75%, and requires further detailed studies to confirm its potential for an underground export coal mine.
Asenjo Energy is the Botswana trading name of African Energy (Botswana) Pty Ltd, a company which was incorporated in Botswana in 2007. Asenjo Energy was formed to explore and develop multiple coal projects in Botswana, including the Mmamabula West Project.
Source: Official statement
