Buffalo Coal Corp. announced. the Secured Credit Facility

Toronto, Ontario–(Newsfile Corp. – January 23, 2023) – Buffalo Coal Corp. (TSXV: BUF) (JSE: BUC) (the “Company“) announced today that its wholly owned subsidiary, Buffalo Coal Dundee Proprietary Limited (“BCD“) has entered into and received approval from the Reserve Bank of South Africa regarding a credit facility agreement dated November 7, 2022 and an addendum to the facility agreement dated December 29, 2022 (e as amended, the “Credit Agreement“) and Ikwezi Mining FZE (the “Donate“), a partner of the company’s largest shareholder, Belvedere Resources DMCC (“Belvedere“).

Pursuant to the Credit Agreement, the Borrower will provide a credit facility to BCD in the principal amount of USD$30,000,000, the amount of which may be drawn by up to ten draws under the Credit Agreement (each rate, a “Allow Home“). Interest will accrue on each Overdraft at a rate based on the rate of borrowing applicable in the United States of America, such as as prescribed by the Reserve Bank of South Africa (7.5% until January 20, 2023), and each Executive Director. will be due and payable in three (3) years after the date of delivery to BCD by the Lender upon notice to the Lender in whole or in part without penalty.

Although the Credit Agreement constitutes a “related party transaction” for purposes of Section 61-101 – Protection of Safe Minorities in Special Trafficking (“MI 61-101“) and TSXV Exchange Policy 5.9, are exempt from the pricing requirements pursuant to Section 5.5(b) of MI 61-101, because the Company’s securities are not listed on a recognized exchange. within that category, and from the minority of the approval requirements according to Section 5.7(1)(f) of MI 61-101, because the mortgage is a non-transferable loan on what was determined by the Company and its members of the independent Board of Directors of the market terms and will not be redeemed in the securities of the Company.

The Company intends to use the original Retained Earnings under the Credit Agreement to repay amounts owed to Belvedere under the Tripartite Restructuring and Refinancing Agreement between the Company and Resource Capital Fund V LP (which Belvedere assumed). The remaining funds available to BCD under the Credit Agreement will be used for general operating purposes.

About Buffalo Coal

Buffalo is a coal producer in South Africa. It holds a majority interest in the operating mines through its 100% interest in BCD, a South African company that owns a 70% interest in Zinoju Coal Proprietary Limited (“I know“). Zinoju holds a 100% interest in the Magdalena bituminous mine, the Aviemore East anthracite mine and the Balgray and North Adit anthracite projects in South Africa. Buffalo Coal has an expertise General Board and Management.

The Company has its primary listing on the TSX Venture Exchange and its secondary listing on the Alternative Exchange, operated by the JSE Limited.

Forward-Looking Information

This press release may contain forward-looking statements within the meaning of applicable securities laws, which reflect the Company’s current expectations regarding to future events. Forward-looking statements are based on a number of assumptions and are subject to many risks and uncertainties, many of which are beyond the control of the Company, which may cause the results facts and events other than those expressed or implied therein. forward-looking information. The Company does not undertake any obligation to update such forward-looking statements, or as a result of new information, future events. in or otherwise, unless expressly permitted by applicable law.


Mrs. Emma Oosthuizen
Chief Financial Officer
email: emma.oosthuizen@buffalocoal.co.za

Greytown Road
Industrial Estate, Dundee
KwaZulu-Natal, 3000

January 23, 2023

Appointed Advisor: Questco Corporate Advisory Proprietary Limited

To view the source of this press release, please visit https://www.newsfilecorp.com/release/152111

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