UNV universal coal plc

There are two announcements to the Shenzhen stock exchange from...

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    There are two announcements to the Shenzhen stock exchange from Hengshun.
    There is one from the 28th of May and one from the 30th May.
    Todays announcement is a strategic partnership that to me looks to align Hengshun with CZA to become involved in South Africas Independent Power Producer Programs.
    The announcement on the 28th is confirming the share purchases agreement which has so far slowed down the Universal acquisition.
    Seems things are falling into place for CZA, in addition to the above I expect UNV New Clydesdale double its current free cashflow in the next two quarters, I believe there is something brewing behind the teens with the coal sales agreement for that project
    Heres a translation from a friend on the Hengshun announcements

    Hengshun Zhongsheng Invests into Coal of Africa Limited in Preparation for Overseas Energy Development
    Date: May 30, 2016 16:49:15 Source: China Securities Network
    On May 28,
    Hengshun Zhongsheng and Coal of Africa Limited have signed the “Acquisition of Shareholding Agreement” and “MOU on Strategic Collaboration Framework”. The company will purchase the 230 million outstanding shares of Coal of Africa Limited at USD 0.0435 per share. The total investment is USD 10 million.

    Announcement of the Signing of “Memorandum of Understanding in Strategic Collaboration Framework” in relations to Coal of Arica Limited
    Page 2
    (2) Collaboration Content: Hengshun Zhongsheng (300208) and Coal of Africa Limited agreed to closely collaborate in the following industry and jointly develop the South African market: including but not limited to coal exploration/mining and other projects. The parties in agreement shall negotiate on the terms and conditions of the collaboration in a manner that is in favor of realizing the effectiveness of the agreement.。
    2. Declaration, Guarantee and Promise
    In view of this MOU, the parties in agreement shall declare, guarantee and promise the followings:
    Both parties have the obligations to sign and fulfill this MOU or enable the other person to fulfill the obligations under this MOU and conduct the items in this MOU with a legal entity with legal rights, ability and authority required by **promotion blocked** and that also enjoy good reputation in the market.
    Page 2
    (2)Signing of this MOU and fulfill any obligations and responsibilities of the items in this MOU. They will not violate or in contradiction with any suitable laws, administrative regulations/or the agreement and contract terms of any party.
    Both parties will not prevent the fulfilment of this MOU due to the signing and/or fulfilment with the contract, agreement and/or other legal arrangements of a third-party.
    Both parties will be at their very best to mutually coordinate in order to handle and /or sign all related procedures and/or documents of this collaboration
    Page 2
    5. The Impact and Influence to the company with the signing of this agreement
    1. Hengshun Zhongsheng (300208) is an outstanding solution provider of green energy power grid in the domestic Chinese market. Its scope of businesses spans across the investment and construction of power plants and the investment of power grid transmission and distribution facilities and industrial parks, development and operation of related businesses. Coal of Africa Limited has many excellent coal mining resource reserves in the Republic of South Africa.
    Hengshun Zhongsheng (300208) and Coal of Africa Limited will base on the foundation of this MOU, expand the international ambitions of industrial chain of Hengshun Zhongsheng, stimulate the export of power equipment in the domestic Chinese market and further develop overseas energy and resources related projects in order to provide an excellent foundation and platform for further development.
    Page 3
    2. The fulfilment of the above MOU will not have major impact on the independence of the company in the next 3 years. The main business of the company will not be reliant on the above collaborating party due to the fulfilment of this MOU.
 
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