Sentula to Sell Stake in SA Mine

13 October 2009 (Last Updated October 13th, 2009 18:30)

Sentula Mining has agreed to sell its 49.9% stake in the Koornfontein coal mine in South Africa's Mpumalanga province to a consortium of two companies for $93.4m. The coal mining contractor will sell its stake to Africa Commodities Group and Bravura Group in the form of shareholder loan

Sentula Mining has agreed to sell its 49.9% stake in the Koornfontein coal mine in South Africa's Mpumalanga province to a consortium of two companies for $93.4m.

The coal mining contractor will sell its stake to Africa Commodities Group and Bravura Group in the form of shareholder loans and other claims against Siyanda Coal, operator of the coal mine, according to Reuters.

The company said the consortium will need to meet the customary regulatory conditions for the Koornfontein mine sale and complete due diligence by 30 October.

Sentula said it has restructured its $218m senior debt facility and is seeking a $68m rights offer to accomplish the debt restructure.

Sentula said it has up to 30 October to cancel the rights offer, by which time the due diligence would have been completed and important conditions met.