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BRIEF-Coal of Africa updates on notice from Rio Tinto Minerals Development Ltd

Published 08/03/2016, 10:34 am
Updated 08/03/2016, 10:40 am
© Reuters.  BRIEF-Coal of Africa updates on notice from Rio Tinto Minerals Development Ltd
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March 8 (Reuters) - Coal of Africa Ltd CZA.AX :

* Cza Rio Tinto (LON:RIO) Chapudi agreements CZA.AX

* Co and unit Mbeuyashu Proprietary Limited received a notice from Rio Tinto Minerals Development Limited

* "Notice alleging that Coal is in breach of an obligation under the agreements"

* Coal will dispute the validity of the notice

* Coal and Mbeuyashu will defend it vigorously

* "Coal and Mbeuyashu have met, and will continue to meet all of their payment obligations to Rio Tinto and Kwezi"

* Original amount owed by Coal and Mbeuyashu to Rio Tinto and Kwezi was USD75 million of which USD56 million has already been paid

* Amount of USD19M is still owing by Coal and Mbeuyashu to Rio Tinto and Kwezi

* Says payments to Rio Tinto and Kwezi are due finally by 15 June 2017

* Source text for Eikon ID:nASXtF1Sc

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