African Energy expands Botswana coal portfolio :: Mmegi Online

Australian junior miner, African Energy Resources, is on track to acquire a 2.4 billion tonne project on the coalfield in south-eastern Botswana, barely three months after concluding another 1.3 billion tonne acquisition near the same area.

On Tuesday, the Botswana Stock Exchange-listed (BSE) announced that it had executed a binding sale agreement to acquire the 2.4 billion tonne Mmamabula West Coal Project from Asenjo Energy, a joint venture comprising South African and Australian investors.

The latest deal will take African Energy Resources' (AFR) portfolio to an estimated 6.2 billion tonnes across three locations along Botswana's eastern coalfields. The deal also means Asenjo's local portfolio now consists of the 2.7 billion Mmamabula East lease and the 1.3 billion tonne Dukwe project which has progressed past pre-feasibility stage. AFR officials said the listed company had conditionally agreed on a cash consideration of US$2.5 million (P22 million) to take over Asenjo's prospecting licence PL65/2005 also known as Mmamabula West.

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