21/05/2009 - 10:21

Continental advances coal restructure

21/05/2009 - 10:21

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West Perth-based Continental Capital has taken a further step towards establishing itself as a coal producer after securing a $20 million debt facility and a deal to acquire two more coal assets.

Continental advances coal restructure

West Perth-based Continental Capital has taken a further step towards establishing itself as a coal producer after securing a $20 million debt facility and a deal to acquire two more coal assets.

The company has previously flagged its restructuring into a coal business after acquiring a 74 per cent interest in Continental Coal earlier this year.

The company received shareholder approval to change its name to Continental Coal.

Continental said the $20 million debt facility will be used to fund the development of the Witbank, Lemonfontein and newly acquired Vlakvarkfontein projects in South Africa.

Continental has entered into an agreement to acquire 60 per cent of Vlakvarkfontein, paying Rand 55 million ($A8.5 million) for the interest.

First production from these assets is expects later this year.

Continental has also acquired a 100 per cent interest in Vlakplaats, paying Rand 180 million ($A27.8 million) to Makana Exploration and Mining.

The company has also restructured its board with the appointments of Andrew Macauley, Bruce Buthelezi and Simon Durack.

Directors Richard Napier and Anthony Eastman have resigned from the board.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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