As part of A$5 million limited recourse bridge funding deal with UK-based Empire Equity, Don Turvey has had to leave Continental Coal along with other key board members, including CFO Lou van Vuuren and some non-executive directors.
Continental Coal announced in a statement that its board now includes former executive director Peter Landau, Empire venture partner Dr Paul D’Sylva, who was acting as interim chairperson, and coal marketing specialist Dr Lars Schernikau.
On Thursday, the company said the reconstituted board of directors will consider a decision on seeking to lift the suspension of the shares, following the closing of the transaction and pending the provision of further clarification of its financial position to the market.
Continental Coal has closed its A$5 million bridge funding and its larger recapitalisation plans are well advanced, the company said in a statement. “The funds have been received by the company’s escrow agent and all conditions met, allowing for the funds to be released so as to meet key payments to current creditors and ensure a 3 month standstill period to recapitalize the company and restructure its financial arrangements.”
The company’s shares have voluntarily been suspended from trading on AIM since January 6 as the company tried to complete a recapitalisation of the company.
Commenting on the closing of the bridge financing and the associated board changes, interim Chairman Dr Paul D’Sylva said, “While it has experienced some balance sheet issues the company is well positioned to supply the domestic/global coal markets from two operating mines. We have received interest from a number of globally recognised energy investors/traders to participate in the company going forward, which we expect to finalise shortly.
“We have complete faith in the assets and operational management of the Company, but believe a range of strategic and financing opportunities can be advanced so as to stabilise the company’s balance sheet and focus on significant growth following completion of the proposed rights issue.”