Further re CoalTech Acquisition and Suspension

Published on 11/1/2019 • Category:

11 January 2019 
                            CLEAN INVEST AFRICA PLC 
                           ("CIA" or the "Company") 
   Further re CoalTech Acquisition and Suspension in Share Trading Pending a 
                            Substantial Transaction 
Clean Invest Africa Plc (NEX:CIA), the NEX Exchange quoted clean technology and 
renewable energy investment company, is pleased to announce, further to the 
announcement of  17 December 2018, whereby the Company has signed a binding 
Sales and Purchase Agreement ("SPA") to acquire the remaining 97.5% of CoalTech 
LLC ("CoalTech") and the remaining 97.5% of Coal Agglomeration South Africa 
(Pty) Ltd ("CASA"), that the Company does not already own, the Company is 
working towards completing the transaction and re-admitting itself back to the 
NEX Exchange Growth Market. It is expected that a general meeting circular will 
be posted to Company shareholders in this first quarter of 2019. Shareholders 
will be presented with ample information in order to decide on the merits of 
the proposed transaction. 
At today's bid price of 2.7 pence, the post completion value of the Company 
would be approximately GBP31m. 
Using CASA's patented technology, CASA is able to convert coal fines found in 
waste coal dumps and slurry lagoons into coal pellets suitable for industrial 
and commercial use. The coal pellets are then used for power generation and any 
other application to which the original coal could have been used for. The coal 
pellets have the required 'green strength' to withstand transportation, 
storage, moisture, produce minimal waste and retain the calorific value 
required for such power generation or other use. CASA currently has the 
capacity to process 120,000 tonnes per annum with its plant based in Witbank, 
near Johannesburg in South Africa. 
The proposed acquisition would constitute a Reverse Takeover as defined by the 
NEX Exchange Growth Market - Rules for Issuers. Accordingly, trading in the 
Company's ordinary shares was suspended on Thursday, 10 January 2019, and will 
remain suspended pending the publication of the required NEX Exchange Admission 
Document, (or an announcement being made by CIA that the acquisition is no 
longer in contemplation by CIA). 
The acquisition is still subject to Completion Conditions, including, inter 
alia, approval of the transaction and a waiver by the Panel on Takeovers and 
Mergers of any requirement under Rule 9 of the Takeover Code that would 
otherwise arise on the Sellers (whether individually or as a concert party) to 
make a general offer for the Company's ordinary shares when interested in 30% 
or more of the voting rights. Whilst a conditional binding Sales and Purchase 
Agreement has been signed, there can be no certainty that the proposed 
acquisition will be completed. 
Noel Lyons, Non-executive Director of the Company commented: "The Company is 
pleased to be progressing the acquisition of CoalTech that operates in the 
exciting coal fines, clean energy space. CoalTech's technology will stand the 
Company in good stead in the months and years ahead." 
Further announcements will be made as necessary in due course. 
The Directors of the Company accept responsibility for the content of this 
Clean Invest Africa PLC 
Noel Lyons 
Telephone: 020 3130 0674 
Corporate Adviser 
Peterhouse Capital Limited 
Guy Miller 
Telephone: 020 7220 9795 
Information on CoalTech and CASA are available at: http:// 
CoalTech's principal focus lies in cleaning up the toxic and environmentally 
damaging waste generated by coal mining. The process delivers a high quality 
saleable energy source, the properties of which allow it to be easily handled 
and transported to customers around the world.  Coal fines or tailings are a 
wasteful by-product of the coal mining process that have a low market value, 
are generally expensive to dispose of, and are left in stockpiles or slurry 
ponds at or near mining sites. At present, vast amounts of coal discards lie 
in  open-air lagoons as wasted by-products. It is estimated that over 30 
billion metric tonnes of coal tailings are available in the top 10 coal 
producing  countries (Source: International Energy Association).  In 2012, 
CoalTech started a programme intended to develop a financially viable 
technology solution that would enable the agglomeration of a large quantity of 
waste coal fines, which are currently being produced and stored as waste, into 
commercially viable products to be sold to domestic and export markets. A test 
pelletizer plant was developed in South Africa, which was later converted into 
a pilot plant in March 2014. Following successful independent testing, 
undertaken by Bureau Veritas, the shareholders took the decision to further 
invest in research and development, and fabricate a modular industrial-size 
pelletizer plant. This plant has been tested and is now operating commercially 
in South Africa.    Through extensive research and development, CoalTech has 
devised a method of  converting coal fines into cost efficient, durable pellets 
by which the coal  fines are bound together in the pelletizer plant using a 
proprietary  chemically-formulated organic binder. Overcoming problems 
experienced by  traditional processes, their heat-resistant binder can be used 
on a large  commercial and industrial scale, with significant cost benefits 
resulting from  the avoidance of storage and handling costs, and by producing 
usable coal  pellets from waste materials with equal calorific value as the 
coal it came  from.    CoalTech has also engaged Sedgmans, a leading 
engineering company in minerals  processing and service provider to the 
resources sector, to develop phase two of the pelletising plants which are now 
at the pre-production phase with  completion expected in quarter four, 
2018.    CoalTech's ambition is to become established as the world's 
pre-eminent clean  technology solution of waste coal fines which can provide 
coal mines and coal  utilisation sites, such as power stations, with on-site 
remediation of a  long-term and challenging environmental issue within the 
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