The Board of South African coal company Continental Coal announced today that it is proceeding with Ivory Mint in respect of the previously announced sale process and looks forward to concluding the transaction over the coming weeks.
Following completion of the rights issue, Ivory Mint has agreed to advance Continental an additional US$5 million as part of its commitment to proceeding with the sale process. Continental will, commensurate with the additional funding from Ivory Mint, provide additional funding to its 74% owned subsidiary to ensure the sale process can proceed with the requisite funding and financing in place.
The $5 million will come into Continental as an unsecured 10% coupon loan converting to either sale proceeds or a coal off-take depending on the final structure utilised by Ivory Mint, in financing the acquisition of the Continental Coal South Africa 74% interest.
Continental has also commenced looking at a number of strategic opportunities with Ivory Mint in the energy sector and looks forward to updating shareholders shortly on key developments.