African Energy and Asenjo Energy have executed a binding Sale Agreement under which African Energy has agreed to acquire the 2.4 Gt Mmamabula West Coal Project in south‐east Botswana for cash consideration of US$2.5m, subject to certain conditions. Mmamabula West contains 892 Mt of Indicated Resource and 1,541 Mt of Inferred Resource at an average Calorific Value of 4,800 kcal/kg (20.1 MJ/kg). A preferred area of approximately 25 km² within the Indicated Resource contains higher quality coal that can produce a 6,100 kcal/kg export product at yields of 75%. African Energy will pay an initial US$1m to Asenjo once the transfer of title of the relevant prospecting licence has been approved, and a further US$1.5m once a retention licence has been granted over the project. On completion of the transaction, African Energy will have increased its total in‐situ resources to 6.2 Gt of thermal coal in Botswana.
Source: African Energy