ZYL tightens grip on Mbila

SOUTH Africa-focused anthracite developer ZYL has entered into a binding heads of agreement that will allow the emerging producer to seize two additional projects and increase its stake in its flagship Mbila project.
ZYL tightens grip on Mbila ZYL tightens grip on Mbila ZYL tightens grip on Mbila ZYL tightens grip on Mbila ZYL tightens grip on Mbila

 

Justin Niessner

Mining rights at Mbila cover 19,120 hectares of the country’s KwaZulu-Natal province where the project holds a JORC-compliant resource of 125 million tonnes of coal.

The transaction to acquire 100% of York Energy will require the offer of $US11.7 million worth of ZYL shares and will increase the explorer’s ownership of the Mbila tenement to 74%.

ZYL will also acquire rights to earn a 60% interest in the Marble project, 30km west of Mbila and a 70% interest in Kangwane North, 30km north of ZYL’s Kangwane Central project.

The company said the move would increase its flexibility in the region and allow it to target both domestic and export anthracite markets via multiple port and transport alternatives.

ZYL chief executive Ian Benning said the agreement with York provided strategic synergies with existing operations.

“The transaction consolidates ZYL’s position within both the South African and international anthracite markets,” he said.

“ZYL will have a well-balanced pool of assets at various stages along the exploration and development value curve, allowing for the scheduling of development based on market demands.

“This places ZYL in a position to produce a diverse range of coal products, catering for a greater number of consumers and increasing flexibility in terms of both mine gate sales and export options.”

Kangwane North has an exploration target of 50-70Mt of coal and is adjacent to well-developed road and rail infrastructure.

Marble covers 7787 ha in the Vryheid coal field and has an exploration target of 15-21Mt of coal.

Kangwane Central is situated in the Mpumalanga province and has an exploration target of 350-450Mt and a JORC-compliant resource of 136.3Mt.

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