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Wescoal, Xstrata extend transaction completion date

26th February 2013

By: Creamer Media Reporter

  

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JOHANNESBURG (miningweekly.com) – JSE-listed Wescoal and global diversified miner Xstrata have extended the date for the satisfaction of certain remaining conditions precedent related to the acquisition and disposal of the Vlaklaagte and Elandspruit mining rights to April 30.

In terms of a deal announced by the companies last year, Wescoal would sell its Vlaklaagte mining right to Xstrata for R81.1-million, and would buy the Swiss-listed group’s Elandspruit right for R93.8-million.

The outstanding conditions precedent included that the Vlaklaagte mining right be granted to Wescoal Mining in accordance with the Mineral and Petroleum Resources Development Act, and that Wescoal Mining obtains Ministerial consent for the transfer of the Vlaklaagte mining rights to Xstrata.

Further, Xstrata would be required to obtain Ministerial consent for the transfer of the Elandspruit mining right to Wescoal.

The parties had previously expected these conditions to be met by February 28.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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