From the GMP report on November 2011 SIOC ann:Continental Coal...

From the GMP report on November 2011 SIOC ann:

Continental Coal reported this morning that it has executed the subscription and shareholder agreement with Sishen Iron Ore Company Community Development Trust (SIOC) to subscribe for 26% interest in its subsidiary Continental Coal South Africa (CCL) as a BEE partner. SIOC will pay initial ZAR140m on finalisation of regulatory consent. We believe it is positive news for the company as it ensures fund inflow for the company which can be used for project development.

DETAILS:

· Broad Based Black Economic Empowerment agreement executed with Sishen Iron Ore Company Community Development Trust.

· SIOC will subscribe for a 26% interest in CCC’s South African subsidiary CCL by making initial investment of ZAR140m. The initial investment will be received upon finalisation of regulatory requirements.

· SIOC will also assume the ZAR75m of the loan account that CCL has against its previous BEE partner. Continental Coal has also invited SIOC to appoint a director to its board and two directors to its subsidiary CCL’s board.

· The company is going to use the fund for further growth of its thermal coal business in South Africa.

· SIOC is the operator of the Sishen South iron ore mines and the 26% BEE holding is made up of 20% Exxaro, 3% SIOC-cdt and 3% employee trust.