(Peninsula Energy 74% / BEE Groups 26%)
In April 2018, the Company announced its decision to fully withdraw from any further development activities for the Karoo Projects in which it has a 74% interest and has suspended all financial support for development activities including progression of mining and prospecting right applications. Peninsula is working together with its joint venture partners and the South African regulators to ensure an orderly exit from the project.
Over the remainder of 2018 the activities in the Karoo will focus on the necessary rehabilitation of exploration and historical trial mining activities in consultation with our joint venture partners and relevant authorities. The Company has now completed rehabilitation of all of the approximately 13,000 boreholes required to be rehabilitated.
The decision to suspend the further development of the Karoo Project does not materially impact the Company balance sheet given the impairment and rehabilitation provisions made in the financial statements for the 6 months ended December 31, 2017. The Company is pursuing the sale of the 322 km2 freehold farmland in the Karoo Basin, the proceeds of which are projected as being sufficient to cover rehabilitation costs.