This acquisition provides Sable Mining with exposure to DMC’s four coal interests in South Africa and Botswana, and is in line with the company’s stated investment strategy to invest in exploration and development projects in coal and uranium assets in sub-Saharan Africa.
Andrew Groves, CEO of Sable Mining, said: “This deal to acquire a 29.33% stake in DMC represents our first transaction aimed at building Sable into a major mining company focussed in southern Africa. DMC has a well defined coal portfolio which we believe we can actively assist in its development, through the application of our combined experience covering a range of natural resource development companies in sub-Saharan Africa.
“We have a defined strategy that has been supported by our institutional shareholder base, who have committed capital to the Company based on our ability to source projects that we can enhance through our operational expertise. We are excited about the future development of Sable, working closely with DMC in rapidly advancing its coal portfolio and identifying additional opportunities that will fulfil our investment strategy.”
DMC has a portfolio of coals assets primarily in South Africa and Botswana at various stages of development. These include: a 2,800 hectare 70% owned Rietkuil project situated near Delmas in northern South Africa; a 5,300 hectare 51% owned Springbok Flats project situated less than 80km from Pretoria; and the 69.65% owned Limpopo coal project.
Included in DMC’s portfolio in Botswana are 12 greenfield concession blocks covering 8,682sqkm and straddling known coal bearing sediments in eastern Botswana. The bulk of these blocks are in the same coal field of Morupule Colliery, which provides circa 80% of the country’s domestic power generation.
