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African Energy Resources Executive Chairman Increases Stake With On Market Purchases

African Energy Resources (ASX: AFR) executive chairman Alasdair Cooke has acquired a further 303,261 shares of the company on the market.

The shares were bought for a consideration of $20,849, for an average price of $0.069 each. He now holds a total of 33,502,925 shares held directly and indirectly.

Cooke also holds 1 million performance rights; 250,000 Unlisted Options exercisable at $0.90 on or before 31 December 2013; 250,000 Unlisted Options exercisable at $1.10 on or before 31 December 2013; and 250,000 Unlisted Options exercisable at $1.30 on or before 31 December 2013.

African Energy had recently closed a formal share sale deed for the acquisition of the 1.3 billion tonne Mmamantswe Coal Project in south east Botswana from Aviva Corporation (ASX: AVA).

On completion of the sale and a capital raising, African Energy will have secured the rights to a total of 3.8 billion tonnes of coal in Botswana and increased working capital to around $6 million from capital raised.

The Mmamantswe Coal Project is in south-eastern Botswana, and comprises a Measured and Indicated Resource of 1.3 billion tonnes of thermal coal, including 895 million tonnes of Probable Reserves.

A 2009 Scoping Study completed by SRK concluded that a 10 million tonnes per annum open-pit mining operation could produce 2.4 million tonnes per annum of washed export coal (22MJ/kg, <20% ash) and 2.1 million tonnes per annum of middlings suitable for power station fuel (15.3MJ/kg, 38% ash) at a ROM (run-of-mine) cash cost of $9.10 per tonne.

An EIA was approved for the project by the Government of Botswana in October 2012.

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