Miningmx reports that Optimum Coal Mine’s creditors have objected to a proposed sale of the mine to an unknown entity, Halo Projects, which they claim is a shelf company.  

They have asked the business rescue practitioners (BRPs) to postpone a meeting to approve the transaction.  In a letter to the BRPs, a representative for the creditors said Halo Projects appeared to be a front company, and that it was unlikely to win a mining licence from the Department of Mineral Resources (DMR) as a result.  Among the creditors’ complaints are that the sale agreement with Halo Projects does not set out payment details for Optimum Coal Mine and that it seems to give preference to certain creditors over others; for instance, service providers appointed to restart the mine will be paid before existing creditors.  Critically, the creditors say Optimum Coal Mine, which also includes Koornfontein mine and an allocation at Richards Bay Coal Terminal (RBCT), has been under-valued.  All in all, Halo Projects would pay R1 for the shares in Optimum Coal, and then a total of R600m over six months.  Creditors, who in terms of the business rescue process have the right to vote on the bidder selected by the BRPs, also complained that they have been given less than two days to approve the transaction, which they believed was insufficient time.

• Read David McKay’s original report in this regard in full at Miningmx
• Read too, Phakamisa “surprised” Optimum awarded to Aussie-backed Project Halo, at Miningmx

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