ASX-listed Continental Coal has sold its 74% interest in South African subsidiary Continental Coal Limited SA to a consortium headed by Ivory Mint Holdings for US$75 million.
“This will leave the company debt free with excess cash reserves at its disposal and the ability to pursue new opportunities,” Continental Coal said in a statement.
In addition to this, Continental Coal has completed the Rights Issue Supplementary Prospectus with 800 million ordinary shares being issued at $0.005 raising AUD$4.0m before costs. Ivory Mint Holdings and their investors have subscribed for 400m shares as part of the transaction.
Originally, in October, Continental Coal announced that it had accepted an offer with offers from a consortium headed by LSP Energy for $72 million, which had until December to complete the transaction.
Failing the completion of the transaction, the Continental Coal Limited SA remained a subsidiary of the company, leaving Continental Coal in urgent need of funding to stabilise its financial position and pay its existing creditors and to meet the its short-term working capital requirements.
Continental Coal currently owes over $29 million to creditors.
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