Lindsay Reed, chief executive officer for Aviva, commented: "Aviva is very pleased to have completed the sale of the Mmamantswe Coal Project to African Energy and to have realised A$3.5 million on this investment.
"I would like to acknowledge the efforts of everybody that was involved in completing this transaction and wish African Energy all the best in developing the Mmamantswe Coal Project."
The completion of sale triggers a final payment due by Aviva under the purchase agreement with Mawana Minerals (Proprietary) Limited.
In terms of this agreement announced on 6 May 2013, Aviva acquired 100% of Prospecting License PL 069 ('the License") by paying US$300,000.
The disposal of the License for more than US$3 million to African Energy leads to a final payment due to Mawana, which will be 10% of the difference between the disposal price of A$3.5 million and US$3 million.
The recent deprecation in the A$ against the US$ will reduce this payment to approximately US$ 22,000.
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