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African Energy: Acquisition of 2.4BT Mmamabula West Coal Project

African Energy Resources Ltd and Asenjo Energy have executed a binding Sale Agreement under which African Energy has agreed to acquire the 2.4 billion tonne Mmamabula West Coal Project in south‐east Botswana for cash consideration of USD $2.5M, subject to certain conditions.


Mmamabula West contains 892Mt of Indicated Resource and 1,541 Mt of Inferred Resource at an average in‐situ raw CV of 4,800kcal/kg (20.1 MJ/kg).

The majority of the coal occurs in two coal seams which are 4‐6m thick and 100‐150m below surface.

A preferred area of approximately 25km2 within the Indicated Resource contains higher quality coal that can produce a 6,100 kcal/kg export product at yields of 75%.

This preferred area requires further detailed studies to confirm its potential for an underground export coal mine.

African Energy will pay an initial USD $1 million to Asenjo once the transfer of title of the relevant prospecting licence has been approved, and a further USD $1.5 million once a retention licence has been granted over the project.

On completion of the transaction, African Energy will have increased its total in‐situ resources to 6.2 billion tonnes of thermal coal in Botswana.

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