Shumba Coal, the coal exploration company says an undertakings to subscribe for 18,572,482 new ordinary shares for a total subscription value of USD2,228,698, have been received from private and institutional investors based in Mauritius.
The company latest revelation follows the announcement released on 17 June 2014 extending the closing date of the private placement of new ordinary shares of no par value (“new Ordinary shares”) at USD0.12 each to 30 June 2014.
“The 18,572,482 new Ordinary will be issued on 16 July 2014 following which the total number of shares in issue will be 196,958,562,” Shumba said.
According to the company, these new Ordinary shares will be admitted for listing by the Botswana Stock Exchange (BSE) and the Stock Exchange of Mauritius Limited (SEM) on or about 13 August 2014, following completion of regulatory approval processes.
“The indicative private placement time table remains as outlined in the announcement released on 17 June 2014.”
Shumba’s flagship Sechaba Project has approximately 1 billion tonnes of thermal coal and is next door only operating coal mine in Botswana and it has multiple 300MW opportunities for domestic and export power; and can also export large tonnages via existing rail.
Speaking at the recent Resources Conference in Gaborone, Shumba Coal CEO, Mashale Phumaphi warned that there is urgent need of power in Southern African countries including Botswana, South Africa, Zimbabwe and Namibia.
Shumba is looking to tap into power shortages in the region through the development of the 300MW Sechaba Energy Project. “Even if we were to put 10x 300MW power stations, we will just be scratching the surface,” Phumaphi said of power needs in the region.
The company recently concluded power station design and selection studies which were accompanied by preliminary financial modelling.
“These studies are a follow on from the power transmission scoping study into transmission solutions describing options available to export power from the Sechaba Energy Project (“SEP”), to be sited on Shumba Coal’s Sechaba thermal coal resource, into the region, which was concluded earlier in the year.”