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  • Continental Coal To Move To Full Ownership Of Mashala Resources 0 comments
    Mar 8, 2013 1:27 AM

    South African focused Continental Coal (ASX: CCC, AIM: COOL) has now settled the sale of the company's non-core shareholding in the Vanadium and Magnetite Exploration and Development Co (NYSE:SA) (Pty) Limited, with total proceeds to be around US$10 million.

    These proceeds will be used towards purchasing all the outstanding minority interests in Mashala Resources not already held by the company's principal and 74% owned subsidiary in South Africa (Continental Coal (NYSE:CCL)).

    Don Turvey, chief executive officer for Continental Coal, commented: "To be able to conclude the sale of one of the company's non core assets and use the proceeds towards the finalisation of acquiring the outstanding minority interests in Mashala, is a major positive for the company and its thermal coal business in South Africa."

    Following the acquisition of the outstanding interests in Mashala, which is scheduled to be completed over the coming days, CCL will hold a 100% interest in the operating Ferreira Coal Mine and Penumbra Coal Mine.

    Turvey added: "We have over the past 3 years invested heavily in establishing a South African thermal coal production, development and export business, that includes the Vlakvarkfontein and Ferreira Coal Mines and now following the commencement of mining activities at the Penumbra Coal Mine, we anticipate increased returns for our shareholders in the coming years."

    Continental Coal's portfolio of projects includes three operating mines, the Vlakvarkfontein, Ferreira and Penumbra Coal Mines, which are set to produce at an annualised rate of 2.8Mtpa of thermal coal for the export and domestic markets.

    The Penumbra Coal Mine produced first coal in November 2012.

    Moving to 100% interest in the operating Ferreira Coal Mine

    Following the acquisition of the outstanding interests in Mashala, CCL will hold a 100% interest in the operating Ferreira Coal Mine and Penumbra Coal Mine.

    Both these mining operations produce a high quality thermal coal that is exported through the Richards Bay Coal Terminal and sold under existing off take agreement into predominantly the Asian markets.

    In addition, CCL will hold a 100% interest in the De Wittekrans Coal Project that is forecast to become the company's fourth coal mine, and where the company is in advanced negotiations in respect to a potential long-term off-take agreement, strategic partnership and stand alone funding agreement for its development.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

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