This follows the acquisition of 32.7 million shares for $3.5 million by Sentient following AFR completing the acquisition of the 1.3 billion tonnes Mmamanstwe coal project in Botswana from Aviva Corporation (ASX:AVA).
Sentient, which manages over US$2.3 billion in the development of metal, mineral and energy assets globally, had previously signed an agreement to become a cornerstone investor in AFR.
This had involved the subscription of an initial 41,666,667 shares at $0.12 each to raise an initial $5 million and a further acquisition of shares to raise a further $3.5 million.
Notably, Sentient has a long term relationship with SDIC, China's fifth largest state owned enterprise and Sentient's joint venture partner in SDIC Xiyang Energy Co - an integrated coal mining and power generation company operating in China.
SDIC's experience in integrated coal and power projects has the potential to boost delivery capability of African Energy's Sese Integrated Power Project, thereby accelerating negotiations for power purchase agreements currently underway.
The Mmamantswe Project 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 tonne 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).
This could be achieved at a run of mine cash cost of $9.10 per tonne for a total capital cost of $350 million on an owner-operated basis.
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