continental coal moves forward in south africa

Continental Coal moves forward in South Africa with settlement of SIOC-cdt transaction

Wednesday, April 04, 2012 by Proactive Investors

Continental Coal (ASX: CCC) has reached a milestone in the settlement of its new partnership in South Africa.

The transaction is with the Broad Based Black Economic Empowerment Company, Sishen Iron Ore Company Community Development Trust (SIOC-cdt).

Under the terms of Subscription and Shareholder Agreements executed in November 2011, SIOC-cdt agreed to acquire the 26% interest in the company’s subsidiary, Continental Coal (CCL) previously held by Masawu by way of a subscription for shares.

Importantly - SIOC-cdt has now commenced payment of ZAR140 million of the loan to be advanced by it to CCL as required under the agreements.

Don Turvey, chief executive officer of Continental Coal, said, "The partnership with SIOC-cdt is considered to be a landmark agreement and we believe it will have a major impact on our business activities and opportunities in South Africa.

“In addition to the agreement and partnership itself, it will now provide CCL with further capital of ZAR140m from the repayment, that will now be applied to advance our South African coal projects.”

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