White will also have the exclusive right to purchase all existing coal fines located in tailings dams, together with all new arising coal fines produced in the three washplant modules processing run-of-mine coal at the Woestalleen Hub for the life of the project.
The project as currently envisaged will comprise a coal fines beneficiation circuit and a BCB plant with a 250,000tpa product capacity.
The total consideration payable by River Energy upon execution of the agreement, in satisfaction of the Phase 1 conditions, is approximately $US1.2 million. A further $1.2 million will become payable on the satisfaction of several conditions, and a commitment by River Energy to proceed with the project.
White Energy said the phased approach provided River Energy with the opportunity to start generating positive cash flow in the short term, through the beneficiation of new arising coal fines using the screening technology.
It would also provide additional time for the River Energy team to further assess the likely quantities of new arising coal fines to be generated at the Woestalleen Hub in the future, prior to committing capital for the proposed BCB plant.
The Woestalleen Hub is within close proximity of the other major project opportunities under review by River Energy in the Witbank/Middelburg coalfields of South Africa.
All necessary site infrastructure and rail access is already in existence. This will enable the efficient supply of beneficiated and briquetted coal fines to both the export and domestic coal markets, White Energy says.
