TORONTO, July 7, 2014 /CNW/ - Further to its press release dated April 29, 2014, Forbes & Manhattan Coal Corp. (TSX: FMC) (JSE: FMC) ("Forbes Coal" or the "Company") has been in discussions with Ikwezi Mining Proprietary Limited ("Ikwezi") regarding a portion of Ikwezi's mining right over the property known as Alleen No. 2, which is located north of Dundee in the Kwa-Zulu Natal province in South Africa, adjacent to Forbes Coal's current Magdalena opencast operations ("Alleen No. 2").
As a result of not receiving regulatory consent from the Minister of Mineral Resources (as required in terms of section 102 of the Mineral and Petroleum Resources Development Act) within the expected timelines, the existing agreement between Forbes Coal and Ikwezi for the acquisition by Forbes Coal of Alleen No. 2, lapsed on June 30, 2014.
Both parties have indicated continued interest in pursuing a transaction in respect of Alleen No. 2 and further details in this regard are anticipated to be announced in due course.
About Forbes Coal
Forbes Coal (which is shortly to be renamed Buffalo Coal) is a coal producer in southern Africa. It holds a majority interest in two operating mines through its 100% interest in Forbes Coal (Pty) Ltd., a South African company which has a 70% interest in Zinoju Coal (Pty) Ltd. ("Zinoju"). Zinoju holds a 100% interest in the Magdalena bituminous mine and the Aviemore anthracite mine in South Africa. Forbes Coal has an experienced coal-focused management team.
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to a transaction in respect of the mining right over Alleen No. 2, and to the future financial or operating performance of Forbes Coal and its projects. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Forbes Coal to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, foreign operations, political and social uncertainties; a history of operating losses; delay or failure to receive board or regulatory approvals; timing and availability of external financing on acceptable terms; not realizing on the potential benefits of the proposed transaction; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of mineral products; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; and, delays in obtaining governmental approvals or required financing or in the completion of activities. Although Forbes Coal has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
SOURCE: Forbes & Manhattan Coal Corp.
For further information:
Chief Executive Officer
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Chief Financial Officer
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