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Replying to e-mailed questions, Continental chief financial officer Lou van Vuuren told Business Day Continental was now trying to raise $15m-$20m in new funds and another $5m-$10m by converting debt into equity.

"We want to ensure that once this transaction has been completed, the company has a sustainable capital structure that will allow it to deliver on its next development project — De Wittekrans," he said.

"Gearing is very high, which creates additional risk for investors that already take on risk investing in the junior mining sector and then also in SA.

"Village and our other shareholders and stakeholders are engaged in this process, as well as a consortium of new investors."

Continental operates the Penumbra, Vlakvarkfontein and Ferreira mines, producing 2.2-million tons of coal a year for the export and domestic markets.