Published on 11/1/2019 • Category:
TIDMCIA
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
announcement.
ENQUIRIES:
Company
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://
www.coaltechenergy.com/
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
industry.
END
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