Under the terms of the contract, African Energy will pay an initial $1m to Asenjo, following the receipt of approval of the transfer of prospecting license PL56/2005 to one of African Energy’s wholly-owned subsidiaries.
A written confirmation of the approval is expected from Minister of Minerals Energy and Water Resources, said the company.
Following approval of retention license, African Energy will further pay $1.5m for the acquisition of the project, which is situated 100km north of Gaborone, and 50km west of the railway line between Gaborone and Francistown.
The acquisition will boost African Energy’s total in-situ resources to 6.2 billion tonnes of thermal coal in Botswana.
