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From: Jimjones1972 (Rep: 3) reply to Jimjones1972Date: 08/15/2018 14:32
Forum: Mining and Commodities Eh! - Msg #6199 - List CAF msgs Thread #674000957 (Rec: 0)
Canaf finalizes subsidiary Southern Coal B-BBEE deal

2018-08-15 11:12 MT - News Release


Mr. Christopher Way reports

CANAF ANNOUNCES FINALISATION OF B-BBEE TRANSACTION FOR ITS SOUTH AFRICAN SUBSIDIARY

Canaf Investments Inc., formerly known as Canaf Group Inc., has finalized its new Broad-Based Black Economic Empowerment transaction for its South African subsidiary, Southern Coal Pty. Ltd.

Further to the announcement dated July 6, 2018, the corporation can confirm that Amandla Amakhulu (RF) Pty. Ltd., a 100% black, privately owned ringfenced company incorporated in South Africa, has acquired 30% of the issued shares of Southern Coal, from Canaf's wholly owned subsidiary, Quantum Screening and Crushing (Pty) Ltd., ("Quantum"), for the value of R18million (C$1.7m approx), with effective date 03 July 2018.

Quantum has in return received cumulative, redeemable preference shares in AAM in the amount of the purchase price, R18million (C$1.7million approx). These preference shares shall provide preferential dividends, until all preference shares have been redeemed by AAM. These dividends are subject to terms and conditions requiring AAM to pay Quantum such dividends from any distribution received from Southern Coal and is also subject to further protective conditions to the benefit of Quantum.

Christopher Way, Chief Executive Officer of Canaf, states, "the finalisation of the transaction with Amandla Amakhulu marks a significant milestone in a strategic plan to bring Southern Coal's B-BBEE rating in line with our customers requirements. It is with great pleasure to deliver what we have promised to our customers."

About Canaf

Canaf is a public company listed on the TSX-V Exchange. Canaf's head office is in Vancouver, Canada, with subsidiary offices in the United Kingdom and South Africa. Canaf owns 100% of Quantum Screening and Crushing Pty. Ltd., a South African based company that owns 70% of Southern Coal (Pty) Ltd., ("Southern Coal"), a company that produces a high carbon, de-volatised anthracite.

About Southern Coal

Southern Coal produces calcined anthracite, a product used primarily as a substitute to coke in sintering processes. Southern Coal produces calcined anthracite by feeding washed anthracite coal through rotary kilns, at temperatures between 900 and 1100 degrees centigrade; the volatiles are driven off and the effective carbon content increased.

Southern Coal's two largest clients are African leaders in steel and ferromanganese production. Southern Coal operates near Newcastle, KwaZulu-Natal, where Quantum's three kilns operate; the majority of Southern Coal's feedstock anthracite is supplied from local anthracite mines in KwaZulu-Natal.

We seek Safe Harbor.

© 2018 Canjex Publishing Ltd. All rights reserved.



Reply to Jimjones1972 - Msg #6183 - 07/06/2018 23:50

Canaf Group to sell 30% of unit for $1.7M

2018-07-06 10:44 MT - News Release

Mr. Christopher Way reports

CANAF ANNOUNCES B-BBEE TRANSACTION FOR SOUTH AFRICAN SUBSIDIARY

Canaf Investments Inc., formerly known as Canaf Group Inc., has provided the terms of its new broad-based black economic empowerment (B-BBEE) transaction for its South African subsidiary, Southern Coal (Pty.) Ltd.

As part of Southern Coal's continuing B-BBEE transformation program, Amandla Amakhulu (Pty) Ltd. (AAM), a 100-per-cent black, privately owned company incorporated in South Africa, has agreed to acquire 30 per cent of the issued shares of Southern Coal, from Canaf's wholly owned subsidiary, Quantum Screening and Crushing Pty. Ltd., for the value of 18 million South African rand (approximately $1.7-million (Canadian)).

Quantum will in return receive cumulative, redeemable preference shares in AAM in the amount of the purchase price, 18 million rand (approximately $1.7-million (Canadian)). These preference shares shall provide preferential dividends, until redeemed by AAM. These dividends will be secured by an irrevocable direction from AAM to Southern Coal to pay Quantum such dividends from any distribution to AAM. The transaction will close by Aug. 31, 2018.

Christopher Way, chief executive officer of Canaf, states: "The signing of this important agreement to sell 30 per cent of Quantum's shares in Southern Coal, confirms our intention to ensure that Southern Coal achieves the required B-BBEE level for the current financial year. We remain focused on securing new long-term contracts for the existing business and also continue to look at diversification opportunities in South Africa and its neighbours."

In addition to this transaction, Southern Coal can confirm that it remains on track in ensuring that all other areas of its B-BBEE transformation plan, including its enterprise, socio-economic, skills, and supplier and development programs, are fully invested in, so to ensure that the company reaches its desired level.

About Canaf Group Inc.

Canaf's head office is in Vancouver, Canada, with subsidiary offices in the United Kingdom and South Africa. Canaf owns 100 per cent of Quantum Screening and Crushing Pty. Ltd., a South African-based company that owns 100 per cent of Southern Coal Pty. Ltd., a company that produces a high carbon, devolatized anthracite. As of July 3, 2018, Quantum agrees to sell 30 per cent of its shares in Southern Coal for the net consideration of 18 million rand; the transaction will close by Aug. 31, 2018.

About Southern Coal

Southern Coal produces calcined anthracite, a product used primarily as a substitute to coke in sintering processes. Southern Coal produces calcined anthracite by feeding washed anthracite coal through a rotary kiln, at temperatures between 900 and 1,100 C; the volatiles are driven off and the effective carbon content increased.

Southern Coal's two largest clients are African leaders in steel and ferromanganese production. Southern Coal operates near Newcastle, KwaZulu-Natal, where Quantum's three kilns operate; the majority of Southern Coal's feedstock anthracite is supplied from local anthracite mines in KwaZulu-Natal.

We seek Safe Harbor.

© 2018 Canjex Publishing Ltd. All rights reserved.
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