Zinoju Coal Proprietary Limited signed an agreement to acquire Alleen No. 2 located north of Dundee in the Kwa-Zulu Natal province from Ikwezi Mining Limited for ZAR 8 million.

Zinoju Coal Proprietary Limited signed an agreement to acquire Alleen No. 2 located north of Dundee in the Kwa-Zulu Natal province from Ikwezi Mining Limited (ASX:IKW) for ZAR 8 million on January 20, 2014. The consideration is based on the estimated run of mine that can be extracted from the mining right area.

If the run of mine actually extracted exceeds the agreed upon production threshold, Ikwezi is entitled to receive a top-up payment equivalent to ZAR 10 per tonne extracted which exceeds the production threshold. The agreement is subject to Zinoju Coal receiving written consent from the Minister of Mineral Resources of the application of sale of the mining right from Ikwezi and the application to purchase the mining right by Zinoju Coal in terms of section 102 of the Mineral and Petroleum Resources Development Act on or before April 30, 2014. On April 29, 2014, Forbes &Manhattan Coal Corp.

extended the closing date to June 30, 2014.