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African Energy Resources chairman takes stake to 13.2 million shares ahead of Sese coal PFS

African Energy Resources chairman takes stake to 13.2 million shares ahead of Sese coal PFS

African Energy Resources (ASX: AFR) has received a vote of confidence from executive chairman Alasdair Campbell Cooke, who has increased his direct holding in the company, taking up 1 million shares.

Cooke purchased the shares on the market for consideration of A$200,288, equivalent to about A$0.20 per share.

This takes Cooke’s total direct holding in African Energy to 13.2 million shares, in addition to 15 million indirectly shares and a number of unlisted options.

African Energy is on its way to the commercial delivery of coal from the company’s Sese Thermal Coal Project in Botswana, with negotiations beginning earlier this month.

In April, the company completed a milestone trial rail delivery of 25 tonnes of coal, demonstrating that the transport of Sese coal via rail to the east coast of Africa is possible using existing infrastructure.

The company will negotiate with Botswana to establish an economic rail tariff for the transport of coal from the Sese project to Maputo in Mozambique.

A Pre-Feasibility Study for Sese is expected to be completed by the end of June this year while a bankable feasibility study remains on track for delivery by the end of 2012, along with mining licence approvals and financing negotiations.

The next step will then be the commencement of coal sales from stage one in mid-2013.

The Sese project hosts over 2.5 billion tonnes of coal at the project in the Indicated category, and is amenable to open-cut strip mining, with low risk and low costs.

Part of the resource is now targeted to be moved into the higher confidence Measured category in the June 2012 quarter.



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African Energy Resources Timeline

Newswire
November 01 2012

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