Continental Coal has revised the planned sale of its South African subsidiary, announcing a new deal with a consortium planning to pay an extra $3 million for the business.
The Perth-based coal producer said a consortium headed by Ivory Mint Holdings Corporation was offering $75 million for its 74 per cent stake in the subsidiary and had subscribed for half of Continental’s $4 million rights issue.
Business News understands that the members of the Ivory Mint consortium had been part of the LSP Energy consortium, which had previously planned to buy the South African business.
Continental said a proof of funds had been provided and a final sign-off on due diligence and execution of formal contracts would occur by 15 January.
Ivory Mint has paid a $5 million deposit for the acquisition.
The purchase price includes a complete payout and settlement of Continental’s debt positions with Barclay’s Africa Group and EDF Trading.
The transaction, which is still subject to certain approvals, is targeted for completion by the end of February.
Continental said trading on the ASX will recommence before Friday next week.
