UK-based miner Sable Mining Africa, whose focus is on mining assets in sub-Saharan Africa, has announced that it has secured an 80 percent interest in Monaf Investments (Private) Ltd (Monaf) which holds the Lubu Coal concession (Lubu) in the Bulawayo Mining District of Zimbabwe for a cash consideration of $3 million, adding that a further $3 million in shares at $0.28 per share will be payable subject to satisfaction of certain conditions precedent.
The transaction is part of the company's strategy to identify and invest in coal and iron ore assets that the board believes can be rapidly developed to production, Sable said.
The Lubu coal concession, which covers 19,236 hectares, is approximately 120 km northeast of the Hwange Colliery and the Bulawayo rail line runs 100 km to the southwest.
Sable Mining CEO Andrew Groves said, "The immediate objective will be for Monaf to initiate a drilling program to better define the geology of the coal basin with the intention of confirming the initial 330 million mt to SAMREC-compliant status."