Proactiveinvestors Australia

Mbila Overview

Mbila is located in the established anthracite-producing region of KwaZulu-Natal with excellent road and rail links to South Africa's industrial heartland and to the ports of Richards Bay and Durban. The mine will produce high-quality anthracite with low-phosphorous, low-sulphur and low-ash characteristics. Mbila-grade anthracite is in high demand from South African producers of mineral sands, ferrochrome, ferromanganese and silicon carbide. In short supply from sources, it commands premium mine-gate pricing. Non-binding expressions of interest in respect of offtake have already been received. Mbila currently has a 125Mt JORC-compliant resource and additional drilling begins shortly in order to increase this. A New Order Mining Right over 19 000ha is in place. The 2012 schedule includes the roll out of detailed engineering designs, as well as construction. First production is expected in Q2 2013 and full production of 840ktpa ROM in Q2 2014. ZYL holds a New Order Prospecting Right over the Msebe area, adjacent to Mbila, which is currently valid until December 2012.

Kangwane Central Overview

The Kangwane Project – comprising the Kangwane Central and Kangwane South areas – is in Mpumalanga, well located for trucking and rail of its lowsulphur, low moisture-content product to the port of Maputo in Mozambique for export to key global markets. The Kangwane Central JORC-compliant resource is currently 136.3Mt and a drilling programme is scheduled to start during Q1 2012 in order to increase the current resource. Much of 2012 will be spent finalising the Definitive Feasibility Study, advancing regulatory processes and locking in offtakes. In 2013 the focus will be on permitting, engineering design and, towards year-end, mine construction. Production is expected to start in Q3 2014, with full production by Q1 2015.

Kangwane South Overview

The Kangwane Project – comprising the Kangwane Central and Kangwane South areas – is in Mpumalanga, well located for trucking and rail of its lowsulphur, low moisture-content product to the port of Maputo in Mozambique for export to key global markets. During Q4 of 2011, ZYL announced that, through a renegotiation process, it had increased by 14% to 70% its interest in Kangwane South for A$3.15 million less than the original negotiated price. The Kangwane South JORC-compliant resource is currently  99.7Mt. Drilling programmes are scheduled to start during Q1 2012 in order to increase the current resource; currently the start of construction of Kangwane South is scheduled for Q3 2015.

Kangwane South is approximately 100km from the coast to the Matola Terminal at Maputo Port in Mozambique and approximately 25 kilometres to the south of Kangwane Central. The strategic location of Kangwane Central and South offers significant opportunities given the proximity to rail, port, water, electricity and roads.

Directors and Management

Board of Directors

Bevan Tarratt – Executive Chairman

Bevan Tarratt has an extensive background in the accounting industry having worked in various local accounting firms for the past 10 years and is a former partner at Marlston Taxation & Financial Services.

In addition, Mr Tarratt has a comprehensive practical business background having owned various medium sized retail businesses and is currently involved in residential and commercial property development. Mr Tarratt also has extensive experience in primary and secondary capital raisings and corporate strategic consulting. Mr Tarratt is currently a Non-Executive Director of ASX Listed Stonehenge Metals Limited and of Minerals Corporation Limited (ASX:SHE and ASX:MSC).

Ian Benning – Chief Executive Officer

Mr Benning manages Hemisphere Corporate Services in South Africa, a privately owned company which is an investment vehicle with a wide range of interests in various mining-related entities. He spent 13 years with Anglo American Corporation in mining operations and production roles and has worked for 16 years in investment banking, specialising in mining finance with FirstRand Group at Rand Merchant Bank, Absa Capital and African Global Capital.

Mr Benning is an Executive Director of ASX-listed Segue Resources Limited (ASX:SEG) and a Non-Executive Director of AIM and TSX-listed Noventa Limited (AIM:NVTA, TSX:NTA).

Phillipe Lalieu – Executive Director

As co-founder of Opes Capital, Phillipe Lalieu has lead numerous transactions in Sub-Saharan Africa including the acquisition and disposal of a number of significant mining assets, the raising of exploration and mine development funding for green and brown field mining projects, resource specific regulatory and compliance advisory and the principle negotiation of off-take and other partnership agreements. Prior to Opes, Mr Lalieu established and jointly managed Invescape Growth Partnership South Africa, the South African private equity and investment management arm of a Dubai-based Investment House and has also worked for Anglo Platinum in corporate finance and business development roles.

John Beck – Non-Executive Director

For over a decade John Beck has been CEO of Mineral Technologies International SA which has been actively involved in both South African and international anthracite markets; he has extensive experience in and knowledge of anthracite sector dynamics and trade flows. Mr Beck is a chartered accountant with 32 years professional experience, variously in auditing, financial and general management. He is a former CEO of South African mobile telephone network MTN and is Chairman and Chief Executive officer at Mbila Resources (Pty) Limited. 

Dr Eric Lilford – Non-Executive Director

Immediately prior to his appointment, Dr Lilford, PhD (Mineral Economics), NHD (Coal Mining), BSc and MSc Eng (Mining) held the positions of National Head of Mining for Deloitte Touche Tohmatsu and was a Partner of Deloitte in the Corporate Finance division. He has over 23 years operational and investment experience across the global resources sector.

Dr Lilford has mine production experience at large underground gold, platinum, copper and coal mines. Specifically Dr Lilford was Director of Project and Business Development at Beny Steinmetz Group Resources, where he managed aspects of a copper-cobalt mine and refinery in Zambia, producing 30,000tpa of copper and 6,500tpa of special grade cobalt metal. In addition Dr Lilford was in production as a Mine Overseer for Randcoal Limited's Rietspruit and Khutala coal mines where he was responsible for producing over 3Mtpa of coal from three operating sections in the underground coal mine.

Dr Lilford's experience includes the completion of both pre feasibility and bankable feasibility studies in numerous jurisdictions, mine production experience as well as corporate advisory and debt arranging for mining companies. Dr Lilford jointly managed the full bankable feasibility study of the Nikanor copper and cobalt project in the DRC and was appointed Non-Executive Director of Nikanor plc, a role he relinquished on emigration to Australia. 

David Greenwood – Non-Executive Director

Mr Greenwood is currently the Executive General Manager – External Affairs and Exploration with Straits Resources Limited where he is involved in investor relations, exploration, marketing and corporate budget development and strategic business planning.

Mr Greenwood has 29 years of geological and mining experience with a number coal, precious metal and base metal producers. His extensive experience in the South African coal industry includes working for Johannesburg Consolidated Investment Company Limited at Tavistock Collieries and the Randfontein Estates Gold Mine and Randex Limited as the senior exploration geologist. He was previoulsy the section head of new business and international operations within the coal division at Gold Fields of South Africa Limited.

Senior Management 

Garth Reardon – Business Development Director

Mr Reardon has over 20 years' experience in senior management and business development roles both in the commercial and Big Four accounting environment. He has held positions with numerous companies based in South Africa including Chief Operating Officer for Asset Management at M Cubed Capital and Vice President, Financial Control at JP Morgan Investment Bank.

Mr Reardon's knowledge of the South African operating environment provides ZYL with valuable experience in pursuing the company's corporate strategy of becoming a metallurgical coal producer.

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