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Mining and energy development company African Energy Resources has acquired a coal project in south eastern Botswana for US$2.5mn
The company acquired the Mmamabula West Coal Project, which is estimated to hold potential coal reserves of 2.4bn tonnes, from Asenjo Energy, a joint venture between Sentula Mining, Jonah Capital and Aquila Resources.
Asenjo Energy operates three coal projects in the Southern African nation, which have been estimated to contain coal reserves of about six billion tonnes.
The Mmamabula West Coal Project, which is situated approximately 100km north of Gaborone, contains 829mn tonnes of indicated resources of coal and 1.54bn tonnes of inferred resources, African Energy Resources said.
The company has two other projects in Botswana and Zambia, with its flagship Sese Coal Project in Botswana estimated to contain more than 2.6bn tonnes of thermal coal, according to company sources.
African Energy Resources said that it will initially pay Asenjo Energy US$1mn for the transfer of the license of the prospect, while the remaining US$1.5mn will be paid after it procures a retention license for the project, the company said.