Aug 29 2015
Buffalo Coal Corp. ("Buffalo" or "the Company") advises shareholders that it has received a notice from the Minister of Mineral Resources in South Africa ("the Minister") withdrawing the Director-General's decision to grant Mining Right 301 ("MR301"), as well as withdrawal of the approval by the Regional Manager of the Environmental Management Plan ("EMP") in respect of that right.
MR301, which is one of the rights underlying Buffalo's Aviemore mine, was granted in June 2013 to Leeuw Mining and Exploration Proprietary Limited ("Leeuw"). At that time Buffalo, through Zinoju Coal Proprietary Limited, acquired the right from Leeuw. The reasons given by the Minister for the withdrawal of the right are procedural issues in respect of the award process, in relation to an objection received from Avemore Trust in October 2013 against the awarding of the right.
Buffalo intends to apply to court for a review of the Minister's decision to withdraw the grant of MR301 and the approval of the EMP ("Review Application").
Pending the institution of proceedings pertaining to the Review Application, the Company, on the advice of senior counsel, has instructed its attorneys and senior counsel to attend to the institution of proceedings to seek urgent relief to -
- interdict the Minister from awarding MR301 to any other party;
- obtain a declaratory order that the -
- Company may continue to mine in terms of MR301;
- the Minister's decision is of no force or effect;
pending the outcome of the Review Application ("Urgent Application").
Senior counsel has advised that it can be expected that the Urgent Application will be heard during the course of the week commencing on 31 August 2015, and that there is a strong prospect of the Company being successful in the Urgent Application.
Pending the outcome of the Urgent Application, mining operations in the MR301 area have been relocated to an adjacent mining right area and the company has sufficient stock on hand to service customers in the short term.
Further details will be provided in due course.
About Buffalo
Buffalo is a coal producer in southern Africa. It holds a majority interest in two operating mines through its 100% interest in Buffalo Coal Dundee (Pty) Ltd, a South African company which has a 70% interest in Zinoju Coal (Pty) Ltd ("Zinoju"). Zinoju holds a 100% interest in the Magdalena bituminous mine and the Aviemore anthracite mine in South Africa. Buffalo has an experienced coal-focused management team.
Source: http://www.buffalocoal.co.za/