We are a project development company acquiring an exploration licence from the Department of Mineral Resources (DMR) in South Africa. We are developing a Coal Bed Methane project on the Ermelo Coal Field (Mpumalanga Province, South Africa). The surface rights are held by owners who are community members. All the land portions have now been put into a trust which in turn will be one of the shareholders of the project development company. All the available properties have now been set aside for all activities and requirements to fully realise the project. The project company has been registered. The project company has performed all initial social participation consultations, and is now preparing for a full Environmental Impact Assessment (EIA) in line with regulatory requirements for mining projects.
Coal Bed Methane is methane gas that is trapped in the coal seam and requires extraction to be released. It is often embedded in water that is in turn trapped in the seam. Methane has been found in various locations surrounding the property referred to. Other international companies are busy with exploration activities on these properties. The proximity of the methane reserves to our property strongly suggests that the possibility in finding decent reserves in our property is very high.
We are seeking early stage investors who will participate in equity finance such that the Exploration drilling, gas reserve estimation and proving can be realised. We are seeking early stage investors at this stage as the project participation hurdle is very low. We have in principle interest from development funding agencies in South Africa for feasibility study funding and resource quantification after exploration. We have also in principle funding interest from international funding agencies (with offices in South Africa), who require exploration results in order to facilitate the project funding for later stages. Investors are required to assist with exploration finance and hence equity share in the project.
It would also be ideal if exploration companies who happen to have gas operations business interest and expertise could come in at this early stage and secure their interest in the project. The site locality will not present unsurmountable challenges when it comes to the gas distribution logistics, be it piped gas or containers. Further, the South African government has progressed significantly in advancing regulations for fully fledged gas development and electricity generation enterprises. A full exploration proposal has been put together by the professional team. A business case and feasibility proposal has also been presented.
Substantial progress has been achieved regarding the preliminary establishment work. All plans and reports will be shared with any investor showing definite interest in this development. A dropbox portal will also be setup for ease of information exchange.
It is the desire of the company to receive any written tangible interest in the project such that the following activities can be concluded:
1. Developer equity support (early stage ) in the project in order to conclude the DMR Exploration license acquisition.
2. To start with the Impact assessment applications and water use regulatory activities.
The exploration period is anticipated to be between two to three years and immediate progress is now necessary.
Interested investors should address their interest to the following persons and request any type of information necessary to make an informed decision: