snr confirms south africa focused cza

AWESOME NEWS!!!!!!!!



SNR confirms South Africa focused Coal of Africa and Caldwell

Wednesday, 11 Nov 2009

Strategic Natural Resources PLC confirmed that South Africa focused Coal of Africa Limited and Switzerland based international wealth management group Caldwell Management AG have taken 4.67% and 4% stake respectively.

SNR said that it raised EUR 650,000 via a placing of 6.5 million shares to boost its operating liquidity in view of its plans to further grow the business by entering new promising markets. Coal of Africa has taken 3.5 million shares in SNR and Caldwell Management 3 million in the placing. The company is currently working to develop its business, looking at promising markets such as exports to further grow sales and planning to enter the industrial boiler market. In the absence of loan repayments from its broad based economic empowerment partners, these developments have brought forward the need for further funding for investments and working capital, which was the reason behind the fundraising move.

SNR managed to achieve sales of EUR 72,000 in the H1 of the year while its operating loss narrowed to EUR 137,000 from EUR 189,000. The company is also coming off a failed takeover deal. Pennsylvania focused open cast miner Atlantic Coal was in talks over a possible acquisition of SNR in early October, however the deal fell through after the SNR board declared the offered price of 15 pence per share did not recognize the strategic nature of the 97 million tonnes of in situ coal of its 74% owned South African subsidiary Elitheni Coal and its coal supply deal in place with IPSA Group.