Microsoft Word - 2015-07-03 Mmamantswe term sheet
6th July 2015
BINDING TERM SHEET SIG
ED FOR THE MMAM
NTSWE PR OJECT
African Energy Resources
imited (AF
) has executed a bindi
g Term She et with an experienced
South African project developer (the "Developer") for the sale of the 100 % owned Mmamantswe coal and power project.
Subject to certain conditions precedent, African Energy has agreed to project on the following te ms:
sell the Mmamantswe
o The Developer will form a bid consortium which
ill sole fun d the preparation and
submission of a bid into South Africa's coal‐fired base load IPP p rocurement programme
using the Mmama
tswe project.
o African Energy will be paid an initial sum of US $10
if the projject bid is s
ortlisted by
South Africa's Dep
rtment of Energy.
o On receipt of the initial $10m, African Energy will transfer owne rship of its shares in the
Mmamantswe project company to the Developer.
o African Energy will receive a second payment of USD $10m if the project reaches Financial
Close.
The
conditions precedent
include completion of
due diligence by the
buyer within 30‐days,
delivery of a
bank guarantee or the creation of an escro
account f or the initial US $10m
payment within 60 days, and completion of a Share Sale Agre
ment withi n 60 days.
AF
retains 100% ownership of the Mmamabula
est coal and power pr oject in Botswana, and a
49% project interest in the Sese Joint Venture (51% owne
Minerals Ltd).
and man aged by First Quantum
For any further information, please contact the Company directly on +618 6465 55 00
For and on behalf of the Board