Buffalo Coal Corp. Announces Secured Credit Facility

Buffalo Coal Corp. Announces Secured Credit Facility

Buffalo Coal Corp. (TSXV: BUF) (JSE: BUC) (the "Company") announced today that its wholly-owned subsidiary, Buffalo Coal Dundee Proprietary Limited ("BCD") has entered into and received approval from the South African Reserve Bank regarding a secured credit facility agreement dated November 7, 2022 and addendum to the facility agreement dated December 29, 2022 (as amended, the "Credit Agreement") with Ikwezi Mining FZE (the "Lender"), an affiliate of the Company's majority shareholder, Belvedere Resources DMCC ("Belvedere").

Pursuant to the Credit Agreement, the Lender will make a credit facility available to BCD in the aggregate principal amount of USD$30,000,000, which amount may be drawn in up to ten draws under the Credit Agreement (each such draw, a "Facility Advance"). Interest will accrue on each Facility Advance at a rate based on the base lending rate applicable in the United States of America, as prescribed by the South African Reserve Bank (7.5% as of January 20, 2023), and each Facility Advance will become due and payable three (3) years after the date such Facility Advance was advanced to BCD by the Lender. The Credit Agreement provides for a general charge against BCD's assets as security for the Facility Advances made thereunder, which may be prepaid by BCD on notice to the Lender in whole or in part without any penalties.

Although the Credit Agreement constitutes a "related party transaction" for the purposes of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101") and TSXV Exchange Policy 5.9, it is exempt from the valuation requirements pursuant to Section 5.5(b) of MI 61-101, as the Company's securities are not listed on a market specified in that section, and from the minority approval requirements pursuant to Section 5.7(1)(f) of MI 61-101, as the credit facility is a non-convertible loan on what the Company and its independent board members have determined are market terms and is not repayable in securities of the Company.

The Company intends to use the initial Facility Advance under the Credit Agreement to repay amounts owing to Belvedere under the Third Amended and Restated Loan Agreement between the Company and Resource Capital Fund V L.P. (which was assumed by Belvedere). The remaining amounts available to BCD under the Credit Agreement will be used for general working capital purposes.

About Buffalo Coal

Buffalo is a coal producer in South Africa. It holds a majority interest in two operating mines through its 100% interest in BCD, a South African company which has a 70% interest in Zinoju Coal Proprietary Limited ("Zinoju"). Zinoju holds a 100% interest in the Magdalena bituminous mine, the Aviemore East anthracite mine and the Balgray and North Adit anthracite projects in South Africa. Buffalo Coal has an experienced coal-focused Board and Management team.

The Company has its primary listing on the TSX Venture Exchange and has a secondary listing on the Alternative Exchange, operated by the JSE Limited.

Forward-Looking Statements

This press release may contain forward looking information within the meaning of applicable securities legislation, which reflects the Company's current expectations regarding future events. Forward looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Company's control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward looking information. The Company does not undertake any obligation to update such forward looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

FOR FURTHER INFORMATION PLEASE CONTACT:

Ms. Emma Oosthuizen
Chief Financial Officer
Email: emma.oosthuizen@buffalocoal.co.za

Registered Office:
Greytown Road
Industrial Area, Dundee
KwaZulu-Natal, 3000

January 23, 2023

Designated Advisor: Questco Corporate Advisory Proprietary Limited

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/152111

News Provided by Newsfile via QuoteMedia

BUF:CA
The Conversation (0)
Buffalo Coal Corp. Announces Special Meeting of Shareholders for Going Private Transaction

Buffalo Coal Corp. Announces Special Meeting of Shareholders for Going Private Transaction

Buffalo Coal Corp. (TSXV: BUF) (the "Company") today announces that it intends to seek shareholder approval for a proposal to take the Company private at a special meeting of shareholders ("Shareholders") to be held on Monday, April 17, 2023 at 10:00 a.m. (Toronto time) (the "Meeting").

The Company proposes to complete the going private transaction by way of a share consolidation and purchase (the "Consolidation") of all common shares ("Common Shares"), other than the Common Shares held by Belvedere Resources DMCC ("Belvedere"), for cash consideration of CAD$0.01 per pre-Consolidation Common Share, for Common Shares held on the TSX Venture Exchange ("TSXV"), or R0.1339580per pre-Consolidation Common Share, for Common Shares held on the Alternative Exchange maintained by JSE Limited ("JSE"). The consideration offered in connection with the Consolidation is equal to the subscription price under the Company's recently completed rights offering, which was greatly undersubscribed. Upon completion of the Consolidation and repurchase of the resulting fractional Common Shares, Belvedere is expected to be the sole Shareholder of the Company, which will then be delisted from the TSXV and JSE. The Company will subsequently apply to the relevant securities regulatory authorities to cease being a reporting issuer.

News Provided by Newsfile via QuoteMedia

Keep reading...Show less
Buffalo Coal Corp. Announces Final Discharge of Investec Loan

Buffalo Coal Corp. Announces Final Discharge of Investec Loan

Buffalo Coal Corp. (TSXV: BUF) (JSE: BUC) (the "Company" or "Buffalo Coal") today announced the final discharge of Buffalo Coal's loan facility with Investec Bank Limited ("Investec"). The Company settled the outstanding loan facility of R32,576,523 including interest along with a reduced royalty amount agreed to with Investec of R2,500,000. On January 13, 2023 Investec issued a final discharge notice confirming that all the indebtedness and obligations of the Company under the loan facility agreement have been irrevocably and unconditionally finally paid and discharged in full on January 12, 2023. Investec has commenced the process to cancel the securities that covered this loan facility.

News Provided by Newsfile via QuoteMedia

Keep reading...Show less
Buffalo Coal Corp. Announces Completion of Rights Offering

Buffalo Coal Corp. Announces Completion of Rights Offering

Buffalo Coal Corp. (TSXV: BUF) (JSE: BUC) (the "Company" or "Buffalo Coal") today announced the completion of the previously announced rights offering to its shareholders (the "Rights Offering"), subject to final approval of the TSX Venture Exchange (the "TSXV").

Buffalo Coal issued 315,135,452 common shares of the Company (each a "Common Share") at a price of CDN$0.01 per Common Share for rights exercised on the TSXV and 111,038 common shares at a price of R0.13396 per Common Share  for rights exercised on the JSE. The Company raised total gross proceeds of approximately CDN$3,152,535.63 (TSXV – CDN$3,151,354.52 and JSE – R14,874.65).

News Provided by Newsfile via QuoteMedia

Keep reading...Show less
MANAGEMENT CHANGES

MANAGEMENT CHANGES

Buffalo Coal Corp.

TSX Venture: BUF

News Provided by Canada Newswire via QuoteMedia

Keep reading...Show less
Buffalo Coal Corp. Announces Amendments to Loan Facilities

Buffalo Coal Corp. Announces Amendments to Loan Facilities

Buffalo Coal Corp. (TSXV: BUF) (the "Company") announced today that the convertible loan facility (as amended from time to time, the ("Convertible Loan") with Belvedere Resources DMCC ("Belvedere") (assumed from Resource Capital Fund V L.P.) has been amended to remove the right of Belvedere, as lender, to convert amounts owing thereunder into shares in the capital of the corporation.

There is currently US$27,000,000 outstanding under the Convertible Loan, together with US$270,175 accrued and unpaid interest. The scheduled maturity date under the Convertible Loan is June 30, 2023. The material terms of the Convertible Loan are disclosed in the corporation's public disclosures which are filed on www.sedar.com.

News Provided by Newsfile via QuoteMedia

Keep reading...Show less
Terrain Minerals Limited

Rare Earths, Gallium Nickel & Copper

Future Facing Commodities Conference | Singapore

Terrain Minerals Limited (ASX: TMX) (‘Terrain’ or the ‘Company’) is pleased to present its investor presentation.
Keep reading...Show less
MTM Critical Metals

Flash Metals Acquisition, Tranche 2 of the Placement and Convertible Note Settlement Completed

MTM Critical Metals (ASX:MTM) (MTM or the Company) is pleased to advise that it has completed the acquisition of Flash Metals Pty Ltd (Flash Metals). The closing of this transaction results in MTM securing exploration licenses in the West Arunta and Mukinbudin regions of Western Australia and the negotiation of the exclusive rights to Flash Joule Heating technology with Rice University.

Keep reading...Show less
Warriedar Resources

A$6.0M Placement to Drive Resource Growth at the Golden Range Gold Project

Warriedar Resources Limited (ASX: WA8) (Warriedar or the Company) is pleased to advise that it has secured binding commitments for a two-tranche placement to raise A$6.0 million through the issue of approximately 157.9 million shares at an issue price of A$0.038 per share (Placement).

Keep reading...Show less
Burley Minerals

Burley’s Pilbara Iron Ore Assets Advancing

Burley Minerals Limited (ASX: BUR, “Burley” or “the Company”) advises that a heritage protection agreement has been signed with Yindjibarndi Aboriginal Corporation over the Broad Flat Well exploration license area. Heritage surveys are planned for late-April/early-May 2024.

Keep reading...Show less
Auric Mining (ASX:AWJ)

Canary Capital Finds Auric Mining a ‘Compelling Investments Case’

Auric Mining (ASX: AWJ) is a “compelling investment case” poised for significant growth driven by the potential of its two flagship projects, Jeffreys Find and Munda Gold, Sydney, Australia-based investment management and corporate advisory firm Canary Capital wrote in a new equity research report.

Keep reading...Show less
Auric Mining (ASX:AWJ)

31 December 2023 Full Year Financial Results. Auric Generated $4.22 Million Net Operating Cash

Auric Mining Limited (ASX: AWJ) (Auric or the Company) is pleased to provide its financial statements for the year ending 31 December 2023.

Keep reading...Show less

Latest Press Releases

Related News

×