DGAP-News: Anglo-African Minerals plc: Proposes to acquire CANAF Group Inc

Anglo-African Minerals plc / Acquisition

05.02.2010 17:58 

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Press Release

Company: CANAF Group Inc and Anglo-African Minerals plc

Symbol:  CANAF (TSX: CAF) Anglo-African Minerals (FSE: AMQ)

Release Date: 5 February 2010

CANAF Group Inc (TSX: CAF) and Anglo-African Minerals plc (FSE: AMQ) are
pleased to announce that AMQ proposes to acquire Quantum Screening and
Crushing (Pty) Limited (and its subsidiary Southern Coal (Pty) Limited) and
CANAF's 51% interest in Canaf (SL) Limited for 3 million AMQ shares. The
Market value of the consideration is $9 million.

Southern Coal (Proprietary) Limited is in the business of producing carbon
for end users in the steel industry. Its customers include BHP-Billiton and
Arcelor Mittal. Quantum is situated in Newcastle, KwaZulu Natal, in the
Midlands, South Africa. The majority of the feedstock anthracite is
supplied by Springlake Colliery which has reserves in excess of 40 years
and is strategically located in the adjacent town of Dundee.

Canaf (SL) Limited is an alluvial diamond business based in Sierra Leone.
By acquiring these assets Anglo-African Minerals will be adding further to
its portfolio of West African mineral concessions .

CANAF's cash producing operations in South Africa will further diversify
the company's portfolio and bring a highly desirable revenue stream. The
addition of the South African business will see the company providing major
steel producers with key components in their respective operations.

All employees of the business to be acquired are expected to join AMQ and
Mr David Way has agreed, following shareholder approval, to join the Board
of AMQ.

Mr Michael Smith, AMQ Chairman said 'David and his team bring an
exceptional contact base and a great deal of management experience in a
variety of African operations. We very much look forward to merging the
operations. In addition, in these uncertain times it is most reassuring to
be cash flow positive before discretionary exploration and capital costs.'

The asset purchase agreement is subject to CAF shareholder approval.


St Andrews Securities                                                      
Broker to Anglo-African Minerals
Harri Huuskonen, Managing Director 
T +44 (0) 207 718 0060
M +44 773 928 6880



Equity Story
T: +49 (89) 21 02 98-0
Fax: +49 (89) 2102 98-49



McLeod Dixon
CANAF Lawyers
Calgary Office
T: (403)267-8222
Fax: (403)264-5973



Haywood Securities
Brokers to CANAF
Vancouver Office
T: 604-697-7100 
Fax: 604-697-7499




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