Thermal coal producer Continental Coal says financial settlement with diversified miner Village Main Reef has occurred.“We welcome Village Main Reef as our committed strategic partner, a group that shares our vision of growing our coal assets in South Africa,” said ContiCoal’s CEO Don Turvey. ContiCoal confirmed that monies due under the placement have been received and the application has been made for the new shares to be admitted to trading on the ASX and AIM markets. Trading is expected to commence on AIM on or around 10 May 2013.
The placement has enabled ContiCoal to raise AU$8 million placement, of 100 million ordinary Continental Coal shares at an issue price of A$0.08 per share. Following completion of the placement and sale of small shareholdings, VMR now holds an interest of 16.34% in the issued share capital of the company.“As a result of this transaction Continental has significantly enhanced its balance sheet, streamlined its capital structure and strengthened the company’s growth strategy and operating credentials in South Africa, with a major, well-credentialed partner,” Turvey concluded.