Shumba Coal says it has been granted the approval to list on Stock Exchange of Mauritius (SEM) with the expected date offer of 50,000,000 shares will commence on 27 May 2014.
The junior coal exploration company however said the move is subject to the company obtaining approval from the Botswana Stock Exchange (BSE) for the primary listing of the aforementioned shares.
“The Listing Executive Committee of the Stock Exchange of Mauritius Ltd has granted approval to Shumba Coal Limited for: (i) the private placement and admission of up to 50,000,000 new Ordinary Shares of no par value of the company on the Development & Enterprise Market (‘DEM’) of the Stock Exchange of Mauritius Ltd at a price of USD0.12 per share representing a value of USD6,000,000; and (ii) the introduction of 7,500,000 new Ordinary Shares, to be issued against application monies amounting to USD900,000 already received from investors, on the DEM,” Mashale Phumaphi’s company stated in a communiqué on the Botswana Stock Exchange.
Shumba said copies of the Further Admission Document will be made available free of charge at the registered office of the Company at IFS Court, TwentyEight, Cybercity, Ebene, Mauritius for a minimum of 14 business days as from the date of the Further Admission Document.
“Prospective investors can call between 9:00 and 17:15 on weekdays at the registered office for a copy of the Further Admission Document,” it advised.
Shumba listed on the BSE in April 2013 to make it the first majority locally owned resources company to become a member of the local bourse.
Shumba Coal is a mineral exploration company, currently building a portfolio of mining and exploration coal projects. Through its subsidiaries, the company’s business is primarily focused on the identification of economically viable mineral prospects, the acquisition of such assets and the development of such prospects into full-scale mining operations.
The company currently has a prospecting license, the Sechaba Project, held by its subsidiary Sechaba Natural Resources (Pty) Limited, and has conducted extensive work including drilling and special studies on the site which have produced positive results, indicating the potential to produce coal by 2016 to supply a nearby power producer in addition to exporting coal at a later date.
The Sechaba Project, with 1 billion tonnes of good quality export thermal coal, is located some 47 km north-north-west of the town of Palapye. The Palapye area is where there is major exploration by other companies and it is where Morupule Colliery, owned by Debswana is located.