Continental Coal expects to settle sale of VanMag stake by March

South African thermal coal production and development company Continental Coal has confirmed that a settlement for its sale of a shareholding in Vanadium and Magnetite Exploration and Development Company (VanMag) is expected to be completed later this month.

South African thermal coal production and development company Continental Coal has confirmed that a settlement for its sale of a shareholding in Vanadium and Magnetite Exploration and Development Company (VanMag) is expected to be completed later this month.

The company said it had agreed a $10m sale of its shareholding in the company as well as a refinancing of a convertible note facility and the establishment of a standby line of funding to provide additional standby working capital for the company.

With regard to the sale of its stake in VanMag, the company reported that it had received confirmation from its lawyers that a further $3m of the $10m total sale proceeds due from the purchaser had been received. It said that settlement of the sale of the its stake in the company remained "on track for settlement later this month".

The outstanding amount now due on the sale of VanMag of approximately $6m is scheduled to be received from the Chinese purchaser later this month upon execution and handover of the final settlement documentation and share transfer deeds.

Continental Coal reported that the proceeds from the sale of the company's shareholding in VanMag are to be used to fund all remaining amounts due for the outstanding minority interests in Mashala Resources that were not already held by the company's principle susbsidiary in South Africa,

Refinancing of convertible notes and standby funding

The company added that it had completed a refinancing of the outstanding amount under the A$5m convertible note facility it entered into in May 2012 and had further established a A$15m standby line of funding.

Continental Coal has a portfolio of projects located in South Africa's major coal fields including three operating mines comprising the the Vlakvarkfontein, Ferreira and Penumbra Coal mines.

Continental Coal's share price was up 2.94% to 4.38p at 08:19 on Tuesday.

MF

Recommended

Share tips of the week – 21 January
Share tips

Share tips of the week – 21 January

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
21 Jan 2022
Seven cheap defence stocks to buy now
Share tips

Seven cheap defence stocks to buy now

We’ve got used to a world without war between major powers, but that era is coming to an end as Russia threatens Ukraine and China eyes Taiwan. Buy de…
21 Jan 2022
Invest in VCTs: tax-free investments set to break records
Investment strategy

Invest in VCTs: tax-free investments set to break records

Generous tax breaks make VCTs – venture capital funds – an attractive supplement to pensions.
21 Jan 2022
HubSpot: a tech stock set to tumble
Trading

HubSpot: a tech stock set to tumble

US tech stocks have had a fantastic couple of years. But this year is unlikely to be so bullish for high-fliers that can’t turn big profits.
18 Jan 2022

Most Popular

Ask for a pay rise – everyone else is
Inflation

Ask for a pay rise – everyone else is

As inflation bites and the labour market remains tight, many of the nation's employees are asking for a pay rise. Merryn Somerset Webb explains why yo…
17 Jan 2022
Temple Bar’s Ian Lance and Nick Purves: the essence of value investing
Investment strategy

Temple Bar’s Ian Lance and Nick Purves: the essence of value investing

Ian Lance and Nick Purves of the Temple Bar investment trust explain the essence of “value investing” – buying something for less than its intrinsic v…
14 Jan 2022
Interest rates might rise faster than expected – what does that mean for your money?
Global Economy

Interest rates might rise faster than expected – what does that mean for your money?

The idea that the US Federal Reserve could raise interest rates much earlier than anticipated has upset the markets. John Stepek explains why, and wha…
6 Jan 2022