Try our mobile app
Buffalo Coal Corporation (JSE:BUC) News - Resources Reserves Technical Report Update National Instrument 43-101, Restructuring Investec Loan Revolving Credit
Buffalo Coal Corp.
Incorporated in Canada and the Republic of South Africa
(Registration number: 2011/011661/10)
Share code TSX Venture Exchange: BUF
Share code JSE Limited: BUC
ISIN: CA1194421014
(“Buffalo Coal Corp.” or “Buffalo” or “the Group” or “the Company”)
RESOURCES AND RESERVES TECHNICAL REPORT UDPATE NATIONAL INSTRUMENT 43-101 (“NI 43-101) AND
RESTRUCTURING OF THE INVESTEC TERM LOAN AND REVOLVING CREDIT FACILITY (“the Investec Loan”)
TORONTO, ONTARIO – Marketwired – April 8, 2022: Buffalo Coal Corp. announces that the Group has filed a
Competent Person’s Report titled “Buffalo Coal Dundee Resources and Reserves Technical Report Update
National Instrument 43-101” (the “2022 Technical Report”) dated April 4, 2022 for the Group’s Aviemore
Mine’s (Aviemore East, Aviemore North and Balgray) Reserve Statement and Magdalena Colliery’s Reserve
Statement as at January 1, 2022.
The 2022 Technical Report is compliant with the Canadian system of reserve and resource reporting as
required under the National Instrument 43-101 (“NI 43-101”) Standards of Disclosure for Mineral Projects and
that required by The South African Code for the Reporting of Exploration Results, Mineral Resources and
Mineral Reserves (“SAMREC”). The 2022 Technical Report presents an update of the October 1, 2012 NI 43-
101 compliant Mineral Resources and Mineral Reserves report issued on March 6, 2013 (the “2012 Technical
Report”)
A comparison of the 2022 Technical Report and 2012 Technical Report is provided below:
Proven (kt) Probable (kt) Total Saleable (kt)
Oct Jan % Oct Jan % Oct Jan %
Reserve Block Seam 2012 2022 Change 2012 2022 Change 2012 2022 Change
Aviemore East Gus * 257 * * - * * 257 *
Aviemore North Gus * 2,930 * * 2,526 * * 5,456 *
Balgray Gus * 547 * * 1,539 * * 2,086 *
Total Aviemore Gus 559 3,734 85.0 7,095 4,065 (42.7) 7,654 7,799 1.9
Magdalena Alfred + Gus 23,616 3,219 (86.4) - - - 23,616 3,219 (86.4)
Total Buffalo Coal All Seams 24,175 6,953 (71.2) 7,095 4,065 (42.7) 31,270 11,018 (64.8)
* Only total Aviemore reserves reported in 2012
1. Column totals may not add up due to rounding differences.
2. October 2012 estimate for Aviemore only provided as total reserves.
3. Magdalena's reserves now only includes >16% volatile coal, whereas the 2012 report also included www.buffalocoal.co.za and on SEDAR
at www.sedar.com.
Restructuring of the Investec Loan
Further to the Company’s announcement dated March 3, 2022 the Company and Investec Bank Limited
(“Investec”) concluded negotiations regarding the restructuring of the R46,114,971 owing on the Investec
Loan, on March 30, 2022. The following salient terms were agreed to:
• Monthly capital repayments of R250,000 for March 2022 to June 2022;
• Subject to the Group having secured R120 million in funding for the development of the Balgray
project, an amount of R6.5 million to be repaid at the earliest of 30 June 2022 or the date on which
the funding has been secured;
• Monthly capital repayments of R1,250,000 for July 2022 to August 2022;
• Monthly capital repayments of R2,500,000 for September 2022 to December 2022;
• The final maturity date and date by when the restructuring of the remaining capital balance owing
should be agreed to be extended to December 31, 2022;
• The Group would be allowed to spend R6.5 million on the development of the Balgray project in the
absence of any third-party funding until June 30, 2022; and
• The reserve bank account and cash sweeping mechanism will continue.
Emma Oosthuizen, the Company’s Chief Executive Officer, commented that “The Resources and Reserves
Technical Report Update supports positive confirmation that value can be unlocked from the Group’s Balgray,
Magdalena and Aviemore North’s mining projects.
The agreement reached with Investec regarding the restructuring of the Investec Loan allows the Group to
continue with limited scale development of Balgray whilst discussions with existing and potential new
investors are ongoing.”
Balgray is the Group’s highest priority project and will extend the Group’s anthracite operations by
approximately 7 years and would need to become operational during the first quarter of 2023 to replace the
diminishing Aviemore East reserves.”
About Buffalo
Buffalo is a coal producer in South Africa. It holds a majority interest in two operating mines through its 100%
interest in Buffalo Coal Dundee, a South African company which has a 70% interest in Zinoju Coal Proprietary
Limited (“Zinoju”). Zinoju holds a 100% interest in the Magdalena bituminous mine, the Aviemore East
anthracite mine and the Balgray and North Adit anthracite projects in South Africa. Buffalo Coal has an
experienced coal-focused management team.
The Company has its primary listing on the TSX Venture Exchange and has a secondary listing on the
Alternative Exchange, operated by the JSE Limited.
Neither the TSX Venture Exchange, nor its regulation services provider (as that term is defined in the policies of
the exchange), accepts responsibility for the adequacy or accuracy of this release.
FOR FURTHER INFORMATION PLEASE CONTACT:
Ms Emma Oosthuizen
Chief Executive Officer
Email: Emma.Oosthuizen@buffalocoal.co.za
8 April 2022
Designated Advisor:
Questco Corporate Advisory Proprietary Limited
Date: 08-04-2022 05:01:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
