ASX-listed Aviva Corporation is now the registered holder of 100% of the prospecting licence under which the Mmamantswe coal project is operated following receipt of Ministerial approval in Botswana.
Aviva announced on 29 April 2013 that it had entered into a conditional agreement with African Energy Resources to sell the project for A$3.5 million and subsequently entered into binding sale documentation in late May 2013.
By acquiring 100% of the licence, Aviva has now satisfied one of the two outstanding conditions precedent to the sale of the project. The only condition precedent that remains outstanding, is Aviva shareholder approval at a shareholder meeting scheduled for 9 July 2013.
Aviva’s Chief Executive Officer Lindsay Reed said: “Aviva is pleased to have obtained Ministerial approval satisfying another condition precedent to the sale of the Mmamantswe coal project. Aviva believes consolidation of coal resources in Botswana is important for the development of the coal sector. The transaction is a good outcome for Aviva shareholders, but also enhances the sector development outlook for African Energy and Botswana. I would like to acknowledge the Botswana government for dealing with this approval in the efficient and timely manner we have become accustomed to over the years”.