Keaton Energy has announced that it has reached agreement on a transaction which, on conclusion, will add 2 844 hectares of prospecting rights to its 4 009-hectare Sterkfontein Project (“the acquisition”) – an increase of  71%.

Keaton Energy Managing Director Paul Miller said: “Importantly, the addition - referred to as the Sterkfontein Extension Prospecting Right – `fills out` the areas between Sterkfontein`s North 2 and South Blocks, marking a big step towards delivery on our stated strategy to consolidated our existing projects.”
Keaton Energy has already drilled 132 boreholes – a total of 25 000 metres – on the original 4 009-hectare Sterkfontein property, from which it has declared a total coal resource of 34.8 million tonnes (“Mt”), 17.5Mt in the indicated category in the North 1 and 2 blocks and 17.3Mt in the measured category in the
South Block.  Results indicated that 50% is export coal and 33% domestic steam coal.

Miller says the acquisition includes data from a recently completed, 25-hole drilling programme, which will give Keaton Energy a six-month head-start on exploration of the additional 2 844 hectares. 

The acquisition, which is subject to Ministerial Consent in terms of Section 11 of the Mineral and Petroleum Resources Development Act, involves  Keaton Energy acquiring a 74% interest in Labohlano Trading 46 (Pty) Limited, holder of the Sterkfontein Extension Prospecting right, from Money Box Investments 156 (Pty) 
Limited (“Money Box”), for an undisclosed amount.

Money Box is owned by a broad-based consortium that includes black professionals, the investment arm of the South African Women in Mining Association and local community members.