Continental Coal and Village receive all approvals for finance agreement

Thermal coal producer Continental Coal says that South African based diversified mining company Village Main Reef (VMR) has received the South African Reserve Bank’s approval regarding the binding finance agreement between the companies, which was the only outstanding condition to its proposed strategic financing transaction with the company.

As previously announced Continental and VMR had entered into binding financing agreements, whereby VMR would subscribe for 100 million ordinary shares in Continental at an issue price of AU$0.08 per share, raising a total of AU$8.0m.

VMR would also establish and fund a mechanism for the sale of parcels of shares held by shareholders with a market value of less than AU$500 (being shareholdings less than a Minimum shareholding as provided for in the Company’s constitution) and acquire on a discretionary basis further Continental shares on market at a price of up to A$0.10 per share, thereby increasing VMR’s shareholding in the company to 19.9% of the issued share capital of the company.
With the final approval now received, Continental said it looks forward to completion and financial settlement of the placement next week and issuance of shares to VMR.

In addition, the company can advised that the closing date for the sale of small shareholdings has now passed and minority members who did not elect to retain their shareholdings will receive the sale consideration in accordance with the timetable and by way of cheque in Australian dollars to the address recorded in the share register as at the closing date.

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