Coal of Africa Limited (CoAL) is acquiring Uitkomst colliery from Pan African Resources for R275m, the parties said on Wednesday morning. During the six months to end-December, Uitkomst sold 327,202 tonnes of metallurgical coal for R225m and its aftertax profit was R21.3m. CoAL said the acquisition would help it generate cash while it brings its flagship Makhado project into operation over the next three to four years. Uitkomst, situated in KwaZulu-Natal near Utrecht, had a net asset value of R209m and about 520 employees, CoAL said in a statement. Pan African Resources said in its statement that selling the colliery allowed it to focus on developing its Elikhulu tailings retreatment plant along with its existing gold operations and its strategic objective of geographically diversifying its operations. CoAL would pay for the colliery with R125m cash and 261-million shares valued at R125m. A balance of R25m must be paid within two years and would bear interest at the prevailing prime...
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