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

The top funds to invest in now
Funds

The top funds to invest in now

As market volatility continues, here are the top funds, stocks and investment trusts investors are putting their money into, according to one investme…
2 Dec 2022
7 sin stocks to buy yielding up to 8%!
Share tips

7 sin stocks to buy yielding up to 8%!

Sin stocks don’t have the best reputation, but when it comes to investment returns, they’re certainly worth a closer look.
2 Dec 2022
Share tips of the week – 2 December
Share tips

Share tips of the week – 2 December

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
2 Dec 2022
3 emerging-market stocks to watch
Share tips

3 emerging-market stocks to watch

The top emerging-market stocks to keep an eye on, according to Union Bancaire Privée’s Eli Koen.
1 Dec 2022

Most Popular

Is it cheaper to leave the heating on low all day?
Personal finance

Is it cheaper to leave the heating on low all day?

The weather is getting colder and energy bills are rising, but is it really cheaper to leave the heating on low all day or should you only turn it on …
1 Dec 2022
Radiator vs electric heater – which is cheaper?
Personal finance

Radiator vs electric heater – which is cheaper?

We compare the costs, pros and cons of radiators and electric heaters and see which one will help keep your energy bill as low as possible.
28 Nov 2022
State pension errors – why tens of thousands of mothers could be missing out on millions in state pension payments
State pensions

State pension errors – why tens of thousands of mothers could be missing out on millions in state pension payments

LCP launches Mothers Missing Millions campaign amid DWP state pension errors.
3 Dec 2022