Increased Prospecting Rights
Friday 21st December, 2007
Category :
Regulator News Service
Strategic Natural Resources PLC is pleased to announce that the exclusive phase three prospecting right,recently granted to its South African subsidiary company Elitheni Coal (Pty) Limited (‘’Elitheni’’), by the South African Department of Minerals and Energy (‘’DME’’), has been executed, notarised and lodged for registation over an area totalling 27,913.4ha. This represents an increase of 12,013ha over the original area of 15,900ha, which was applied for and granted by the DME.
The prospecting right will remain in force for five years and drilling operations in this area will commence in January 2008. Further updates will be provided following developments.
Elitheni now have the exclusive prospecting rights to coal in the Eastern Cape of South Africa, for exploration and conversion to mining over an area of 37, 197.04ha. This is an increase of 300% of the original prospecting rights area of 9,283.8ha that had been granted to Elitheni at the time of SNR’s listing in August 2007.
The new territory over which the group has exclusivity is expected to add considerably to the coal resource which will eventually be put into commercial production. The Board of SNR believes that it will allow a further future expansion of the 500 MW of mine mouth clean coal power development currently planned for Indwe under SNR’s agreements with IPSA Group PLC.
Speaking today about the DME grant of new prospecting rights, Barry Nel, Commercial Director of SNR, said, “We recently announced that we had achieved an interim 40 million tonnes of coal on our first 9,000 hectare prospecting area having drilled less than 7 per cent. of that area. Now we nearly have an additional 28,000 hectares on which to drill. I cannot tell you how excited I am and what this means for all the communities of the Eastern Cape, which for years have been held back by lack of a local energy resource.”
Jeremy Metcalfe, CEO of SNR said “ This increase in our land position and the securing of our BEE partners is a very major step for our company. SNR listed on AIM on the basis of approximately 9,200 hectares and now the total area is four times the original size. 2008 looks like being a very busy year.”
For further information contact:
Jeremy P. Metcalfe
Chief Executive
Strategic Natural Resources PLC
Tel: +44(0)1303 874 798
Allan Piper
First City Financial Public Relations
Tel: +44 (0) 20 7242 2666
Rod Venables / Cecil Jordaan
HB Corporate
Tel: +44 (0) 20 7510 8600
RSS Feed