Homeland Energy Group Ltd. Votes in Favour of Altona Resources Share Issue to Tongjiang of Hong Kong
TORONTO, ONTARIO - (Marketwire - May 1, 2008) - Homeland Energy Group Ltd. (TSX:HEG - News; 'Homeland' or 'the Company') is pleased to announce that it will be supporting the motion put forward by the management of Altona Resources Ltd. (ASX:ANR - News; "Altona") to issue 240 million common shares of Altona to Tongjiang International Energy Co. Ltd ("Tongjiang"), a Hong Kong-based investment company.
Homeland Energy, a significant shareholder in Altona Resources, believes that there is significant merit to Altona's Ackeringa coal project in South Australia and that Homeland' shareholders will benefit from this exposure to one of the last sizeable undeveloped energy sources in the world. The Company feels that Tongjiang's investment and its influence on the strategic direction of Altona will add value and be a positive development in Altona's evolution.
Homeland Energy Group Ltd. is a public company trading on the Toronto Stock Exchange under the symbol "HEG" and is focused on energy exploration and development in Southern Africa. Homeland owns three advanced development and pre-development coal projects in South Africa and a number of early-stage exploration properties in the provinces of Mpumalanga and Kwa-Zulu Natal. The Company is currently negotiating to acquire interests in a number of additional coal properties in eastern South Africa and neighbouring countries. Homeland is also a significant shareholder in Homeland Uranium Inc., a Canadian uranium exploration and development company focused on projects in Niger and the United States, and has a several other global strategic investments. Homeland Energy Group Ltd. began trading on the Toronto Stock Exchange on March 5, 2008 and has 145,001,117 shares outstanding.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This release contains certain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections. Except for statements of historical fact relating to the Corporation, certain information contained herein constitutes "forward-looking statements". Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other ecological data, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors. Circumstances or management's estimates or opinions could change. The reader is cautioned not to place undue reliance on forward-looking statements.
Contact:
Naomi Nemeth
Homeland Energy Group Ltd.
VP, Investor Relations
(416) 506-1979
Email: nnemeth@homelandenergygroup.com
Stephen Coates
Homeland Energy Group Ltd.
President and Chief Executive Officer
+44 20 7016 9881
Email: scoates@homelandenergygroup.com
Website: www.homelandenergygroup.com
Homeland Energy Sells 5% Interest in its South African Subsidiary to GMR Group of Bangalore, India
- Sale of interest in Homeland South Africa provides cash for further development of South African and regional assets and for potential acquisitions
- Developing partnership brings balance sheet strength and power development expertise to Homeland
Toronto, Canada (April 17, 2008) - Homeland Energy Group Ltd. (TSX:HEG) ('Homeland' or 'the Company') is pleased to announce that it has completed the sale of five per cent (5%) of its South African subsidiary, Homeland Mining and Energy SA (Pty) Ltd ("Homeland South Africa") to GMR Energy Limited ("GMR Group") of Bangalore, India for a cash payment to Homeland of US$15 million. GMR Group maintains options to acquire an additional 5% and 40% of Homeland South Africa valuing the Company's subsidiary at US$310 million. If all three options are exercised by September 2, 2008, Homeland Energy will receive a total of US$155 million for the sale of 50% of Homeland South Africa. Details of the three options are included below. The sale to GMR Group incorporates the projects and properties held within Homeland's South African subsidiary, including the Kendal Mine, Eloff coal mining project, the Northfield site reclamation project as well as exploration projects in South Africa. The transaction excludes Homeland Energy's corporate interests in Homeland Uranium, Altona Resources and other projects under consideration in southern Africa and elsewhere.
"This transaction represents a strategic move forward for Homeland Energy Group, as well as an endorsement of the quality of the underlying assets of the Company," commented Stephen Coates, President and CEO. "Our Board and management team believe that a partnership with an organisation of the quality of the GMR Group and the cash resulting from this deal provides the independence to develop the Eloff coal project, as well as other global opportunities that may arise. As these funds will be paid to Homeland's corporate entity, we are not limited to southern Africa for the deployment of the funds."
According to BVN Rao, Chairman & Managing Director of GMR Energy Limited: "The acquisition of sizeable coal assets overseas is a very critical part of GMR Group's international energy business strategy. Apart from ensuring fuel security for GMR Group's power projects in India, such a transaction also acts as a catalyst in the development of the energy business group. In our search for such assets we found that Homeland South Africa provided us with a perfect platform to grow the group's thermal energy portfolio. We are very pleased to be associated with Homeland Energy as a strategic partner in coal ventures. Apart from the quality and size of Homeland's South African coal assets, especially the development potential of the Eloff Project, we are impressed by the technical expertise, country specific knowledge and, above all, the commitment shown by the Homeland team. We, in turn, are committed to developing Homeland South Africa's assets into a world-class venture."
The GMR-Homeland Transaction
The conclusion of this initial sale by Homeland to GMR Group follows the negotiation of a Shareholders' Agreement and a Share Purchase Agreement (the "SPA") setting out the terms and conditions upon which Homeland agreed to sell up to a 50% voting and participating equity interest in Homeland South Africa to GMR Group. Following signing of a memorandum of understanding (the "MOU") in December 2007, Homeland received a payment of US$3 million. The additional payment made on April 15, 2008 of US$12 million completes the sale of the first 5% of the shares of Homeland South Africa for a total purchase price of US$15 million (the "First Option").
GMR Group holds an option -- subject to conditions precedent -- to purchase a further 5% of the shares of Homeland South Africa from Homeland for a purchase price of a further US$15 million on or before the date which is the later of May 1, 2008 and the date which is 10 days following receipt of an updated Independent Technical Report on the mineral resource at Homeland's Eloff property (the "Second Option").
If the Second Option is exercised, GMR Group holds a final option to purchase 40% of the shares of Homeland South Africa for either US$125 million, if such option is exercised on or before September 2, 2008, or US$135 million, if such option is exercised after September 2, 2008 but on or before December 31, 2008 (the "Third Option"). The SPA provides Homeland with the right to buy back the Homeland South Africa shares sold under the First Option if the Purchaser does not exercise the Second Option. The purchase price for the shares subject to this buy back right is payable in cash and is equal to the original price paid plus 10% interest accruing from the date that the First Option was completed. The SPA also provides Homeland with the right to buy back the Homeland South Africa shares sold under the First Option and the Second Option if the Purchaser does not exercise the Third Option. The purchase price for the shares subject to this buy back right is payable in cash and is equal to the original price paid plus 10% interest accruing as to 50% from the date that the First Option was completed and as to 50% from the date that the Second Option was completed.
GMR Group Limited
GMR Group is a Bangalore headquartered global infrastructure group with interests in Airports, Energy, Highways and Urban infrastructure as well as in the manufacturing sector, spanning the Agri-business including Sugar and Ferro alloys. The company is one of the fastest growing infrastructure organizations in India. Employing the Public Private Partnership model, the GMR Group has successfully implemented several infrastructure projects in India. With completion of the development of India's newest airport in Hyderabad, and the Delhi International Airport project well underway, GMR Group has established itself as a frontrunner and pioneer in the core infrastructure areas of the country. GMR's subsidiary, GMR Infrastructure Limited ("GIL"), is a Bombay-listed publicly traded company with a market capitalization in excess of US$6 billion. When the Government of India opened the power sector to investments from the private sector, GMR Group took a strategic decision to venture into this sector. Over more than a decade, the Group has established its credentials and now has three power plants in Mangalore, Chennai and Andhra Pradesh. The GMR Group is currently developing three more power projects.
An infrastructure holding company, GIL was formed to fund the capital requirements of the GMR Group's initiatives in the infrastructure sector. GIL is engaged in the development of various infrastructure projects in the power and transportation sectors through several special purpose vehicles.
GMR Group's assets include six power plants, three of which are in production today, six road projects, two of which are in commercial operation and four are under development; and two airport projects, the recently completed Rajiv Gandi International Airport and the modernization and re-development of the Delhi International Airport. The GMR Group plays an active role in all stages of development of all projects, including the supervision of construction services, financing and operation.
The GMR Group is also actively engaged in the areas of Education, Health, Hygiene and Sanitation, Empowerment & Livelihoods and Community-Based Programs under its Foundation wing, reaffirming its grass root presence as change agents of society in the field of Corporate Social Responsibility. A dedicated division, the GMR Varalakshmi Foundation, manned by committed professionals, oversees and manages these projects across India.
Homeland Energy Group Ltd. is a producing coal company, traded on the Toronto Stock Exchange under the symbol "HEG". The company is focused on energy exploration and development in Southern Africa. Homeland owns two producing operations -- the Kendal Mine near Witbank, South Africa and the Northfield site reclamation project near Dundee, South Africa - an advanced development coal project in South Africa (Eloff coal mining project) and a number of early-stage exploration properties in the provinces of Mpumalanga and Kwa-Zulu Natal. The Company is currently negotiating to acquire interests in a number of additional coal properties in eastern South Africa and neighbouring countries. Homeland is also a significant shareholder in Homeland Uranium Inc., a Canadian uranium exploration and development company focused on projects in Niger and the United States, and has several other global strategic investments. Homeland Energy Group Ltd. began trading on the Toronto Stock Exchange on March 5, 2008 and has 146,041,117 common shares issued and outstanding.
For further information, please contact:
Naomi Nemeth, VP, Investor Relations
T: +1 416 542 3978
E: nnemeth@homelandenergygroup.com
Or
Stephen Coates, President and Chief Executive Officer
T: +44 20 7016 9881
E: scoates@homelandenergygroup.com
Please visit www.homelandenergygroup.com
Homeland Energy Group Ltd. Selects Mining Contractor for its Kendal Coal Mine in South Africa
- Total mining costs are in line with Company estimates
Toronto, Canada (March 31, 2008) - Homeland Energy Group Ltd. (TSX:HEG) ('Homeland' or 'the Company') has notified Moolman Mining ("Moolmans"), an operating Group of Aveng Limited, of their success in being named Preferred Bidder for the 3-year initial mining contract for the Company's Kendal Coal Mine. Kendal Mine will be an opencast mine and is located approximately 100km east of Johannesburg in Mpumalanga province of South Africa and represents a significant project in Homeland Energy's portfolio of assets. Homeland Energy owns 74% of the Kendal project, with the remaining 26% owned by local strategic partners in South Africa.
This standard mining contract will include the mining of a minimum of 150,000 run-ofmine tonnes of coal per month up to the point of delivery to the on-site crushing and screening plants. The tender includes the removal of all material above the coal seams, intermediate coal partings between significant seams and subsequent rehabilitation of the mined out area, subject to the standards set by Homeland Energy. The initial duration of the contract will be three years, at which time the contract may be re-negotiated or retendered. Total costs, including mining and processing, at Kendal are anticipated to be in the ranges of C$12 to C$14 per saleable tonne for run-of-mine product and C$16 to C$20 per saleable tonne for beneficiated product.
"The awarding of this contract to Moolmans for the mining of Homeland's first producing coal mine marks yet another significant milestone in our company's development in a month that has seen Homeland's greatest corporate and operational progress since the company's inception in 2004," commented Stephen Coates, President and CEO. "We are committed to achieving production from Kendal during the second quarter of 2008, following the commissioning of our processing facility in early April." "We are looking forward to working in partnership with Moolmans at the Kendal Coal Mine," commented Mike Nell, Homeland Energy's Chief Operating Officer. "Moolmans has proven to be exceptionally professional in our negotiations to date and has impeccable reputation for contract mining in southern Africa."
"Moolmans is proud to be associated with Homeland Energy in the capacity of their opencast mining contractor on the Kendal Project. The award of this contract will give us the opportunity to further entrench and grow our positioning in the coal mining industry, particularly during this period of high demand for these products. We look forward to partaking in this prestigious project, and to forming a long-term and mutually beneficial relationship with Homeland Energy."
Homeland Energy Group Ltd. is a public company trading on the Toronto Stock Exchange under the symbol "HEG" and is focused on energy exploration and development in Southern Africa. Homeland owns three advanced development and predevelopment coal projects in South Africa and a number of early-stage exploration properties in the provinces of Mpumalanga and Kwa-Zulu Natal. The Company is currently negotiating to acquire interests in a number of additional coal properties in eastern South Africa and neighbouring countries. Homeland is also a significant shareholder in Homeland Uranium Inc., a Canadian uranium exploration and development company focused on projects in Niger and the United States, and has a several other global strategic investments. Homeland Energy Group Ltd. began trading on the Toronto Stock Exchange on March 5, 2008 and has 145,001,117 shares outstanding.
Moolman Mining
The Moolmans organization, an operating group within The Aveng Group, began open pit mining in the late 1970s. Today Moolmans is a major force in surface mining in Africa. Moolmans currently works on twelve projects in six African countries, moving more than 13 million tonnes of material monthly. They have mined a range of commodities for a variety of reputable clients.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This release contains certain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections. Except for statements of historical fact relating to the Corporation, certain information contained herein constitutes "forward-looking statements". Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other ecological data, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors. Circumstances or management's estimates or opinions could change. The reader is cautioned not to place undue reliance on forward-looking statements. For further information, please contact:
Naomi Nemeth, VP, Investor Relations
T: +1 416 506 1979
E: nnemeth@homelandenergygroup.com
Or
Stephen Coates, President and Chief Executive Officer
T: +44 20 7016 9881
E: scoates@homelandenergygroup.com
Please visit www.homelandenergygroup.com
Homeland Energy Group Ltd. Receives Mining Licence for Kendal Coal Mine, South Africa
- Mining contract to be finalized by mid-April 2008
- Anticipated mine-life at Kendal of +12 years
TORONTO, ONTARIO - (Marketwire - March 19, 2008) - Homeland Energy Group Ltd. (TSX:HEG) ('Homeland' or 'the Company') is pleased to announce that its subsidiary, Homeland Mining & Energy SA (Pty) Ltd., has received the Mining Licence for the Kendal Coal Mine in Witbank from the South Africa Department of Minerals and Energy (DME). Throughout the application process, Homeland has continued construction of the mine infrastructure and has been progressing on awarding of the mining contract through a tender process. Witbank is located approximately 100km east of Johannesburg, South Africa and the Kendal Mine is located approximately 2km northeast of the Kendal Power Plant.
"We are very pleased that the DME has granted our licence to begin mining the Kendal coal resource and would like to express our gratitude to the government officials and administrators who worked closely with us and who kept us informed as our application was moved through the process efficiently," commented Stephen Coates, President and CEO. "The Kendal licence is the second major milestone that Homeland has reached during the month, following the start of trading on the Toronto Stock Exchange on March 5, 2008."
Mining at Kendal is due to commence in the second quarter of 2008, following commissioning of the recently built on-site crushing and screening plants and the 200tph Parnaby Cyclones wash plant. Commissioning of the plants will take place using previously mined material, currently sitting in dumps on the Kendal mining site. This contract went out to tender in late December 2007, responses were received in late January and Homeland's operations team is in the final phase of negotiations with several of the interested parties. It is anticipated that the mining contract will be awarded in early April 2008.
With the processing facility on site, the Kendal Coal Mine has an opencast resource well situated in close proximity to South Africa's large industrial base in Johannesburg. Approximately 57 per cent of the production from Kendal will be sold into the lucrative domestic industrial markets with the remainder, largely a run-of-mine product, feeding the growing domestic electrical markets. Kendal is designed to handle approximately 6,000 tonnes per day, producing approximately 112,000 tonnes per month of saleable coal. An independent 43-101 compliant technical report was prepared by SRK Consulting of Johannesburg dated July 31, 2007 which may be found on SEDAR at www.sedar.com or in the project section of the Homeland Energy website at www.homelandenergygroup.com.
Operations Overview
Eloff Mining Project
The Kendal Coal Mine is the first, and smaller, of two projects that Homeland Energy is currently developing. The second is the Eloff Mining Project, located 10km south of the town of Delmas in Mpumalanga province of South Africa, 75km east of Johannesburg. This project, with an historically-calculated resource of 382 million tonnes of coal, holds the potential for largely opencast mining with the possibility of future underground mining and which could supply a low grade of coal to the South African power generating industry with the potential to upgrade for local industrial consumption or international export markets. This particular coal deposit could be ideal for power generation, coal-to-liquids and targeted export markets. The Company has filed for a Mining Licence for Eloff and additional resource definition, mine planning, environmental work are all underway.
Environmental Clean-up Projects - Northfield Slurry Dump
Homeland Energy is developing an additional group of environmental clean-up projects in southern Africa, the first of which, already in production, is the Northfield Slurry Dump located in South Africa, 220km southeast of Johannesburg. Work began in stockpiling of material for reprocessing of this previously-processed material following the granting of the permit by DME in December of 2007. It is anticipated that this dump will produce up to 300,000 tonnes per year to be used mainly for brick making and possibly for power generation.
Coal Exploration Projects
Prospecting licences have been granted to Homeland's local partners for another several coal exploration projects in South Africa and Homeland will continue to evaluate each of these projects for economic potential. In addition, Homeland is developing interests in coal projects in Swaziland - prospecting and mining licence applications submitted for an anthracite deposit at Mpaka Coal - and Botswana - five concessions with prospecting licences awarded to local partners.
Strategic Acquisitions
While Homeland Energy is focused primarily on the development of Kendal Mine and the Eloff Mining Project, the company's strategy also encompasses the evaluation of additional projects with a strategic fit with current operations. As such, Homeland Energy owns 39% of Homeland Uranium, with projects in Niger and the United States, and 15% of Altona Resources, currently developing a 7.8 billion tonne historic coal resource in South Australia.
Exploration and mine development programs are carried out under the supervision of Mr. Mike Nell, Chief Operating Officer, Homeland Energy Group Ltd. Mr. Nell, a professional mining engineer and "Qualified Person" as defined under National Instrument 43-101, has reviewed and verified the technical content of this press release.
Homeland Energy Group Ltd. is a public company trading on the Toronto Stock Exchange under the symbol "HEG" and is focused on energy exploration and development in Southern Africa. Homeland owns three advanced development/predevelopment coal projects in South Africa and a number of early-stage exploration properties in the provinces of Mpumalanga and Kwa-Zulu Natal. The Company is currently negotiating to acquire interests in a number of additional coal properties in eastern South Africa and neighbouring countries. Homeland is also a significant shareholder in Homeland Uranium Inc., a Canadian uranium exploration and development company focused on projects in Niger and the United States, and has a several other global strategic investments. Homeland Energy Group Ltd. began trading on the Toronto Stock Exchange on March 5, 2008 and has 145,001,117 shares outstanding.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This release contains certain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections. Except for statements of historical fact relating to the Corporation, certain information contained herein constitutes "forward-looking statements". Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other ecological data, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors. Circumstances or management's estimates or opinions could change. The reader is cautioned not to place undue reliance on forward-looking statements.
The historical resource estimate of 382 million tonnes of coal for the Eloff Mining Project is based on data and reports prepared by previous operators and information provided by government ministries. The Company has not yet completed the work necessary to have the historical estimate verified by a QP. The company is not treating the estimate as a current NI 43-101 defined resource and the historical estimate should not be relied upon. The property will require additional exploration which the Company and its consultants intend to carry out in due course.
FOR FURTHER INFORMATION PLEASE CONTACT:
Homeland Energy Group Ltd.
Naomi Nemeth
VP, Investor Relations
(416) 506-1979
Email:
or
Homeland Energy Group Ltd.
Stephen Coates
President and Chief Executive Officer
+44 20 7016 9881
Email:
Website: www.homelandenergygroup.com
Homeland Energy Group Ltd. (TSX:HEG)
Homeland would also caution investors using third party news and information sites to ensure that the ticker symbol "HEG" on the Toronto Stock Exchange, and not another exchange such as the TSX Venture Exchange, is used. Homeland Energy Group Ltd. trades only on the Toronto Stock Exchange.
Homeland Energy Group Ltd. is a public company trading on the Toronto Stock Exchange under the symbol "HEG" and is focused on energy exploration and development in Southern Africa. Homeland owns three advanced development/pre-development coal projects in South Africa and a number of early-stage exploration properties in the provinces of Mpumalanga and Kwa-Zulu Natal. The Company is currently negotiating to acquire interests in a number of additional coal properties in eastern South Africa and neighbouring countries. Homeland is also a significant shareholder in Homeland Uranium Inc., a Canadian uranium exploration and development company focused on projects in Niger and the United States, and has a several other global strategic investments. Homeland Energy Group has 143 million shares outstanding.
FOR FURTHER INFORMATION PLEASE CONTACT:
Homeland Energy Group Ltd.
Naomi Nemeth
Vice President, Investor Relations
(416) 506-1979
Email: nnemeth@homelandenergygroup.com
or
Homeland Energy Group Ltd.
Stephen Coates
President and Chief Executive Officer
+44 20 7016 9881
Email: scoates@homelandenergygroup.com
Website: www.homelandenergygroup.com