Manager of Company Announcements Australian Securities Exchange Limited Level 6, 20 Bridge Street SYDNEY NSW 2000
By E-Lodgement
Logistics Secured
Continental Coal Limited (“Continental” or “the Company”) is pleased to announce that the Company’s South African subsidiary Continental Coal Limited (“CCL”) has reached an important milestone in its path to production by way of securing logistics support, rail and Richards bay port allocation through local company Ulwazi Coal.
The allocation is initially for up to 150,000 tonnes per month in line with the Company's production ramp up and Continental and Ulwazi are currently completing final logistics and engineering plans over the coming weeks. Importantly there is potential for the allocation to be increased to around 500,000 tonnes per month in future years to cater for some of Continental's other projects coming on line. Continental and Ulwazi are also in discussions with regard to potential marketing arrangements for both local power station coal and export thermal coal.
The initial logistics will focus on the recently acquired Chelmsford project which will target 50,000 tonnes per month (export) moving to 100,000 per month Q1 2010. With 3 existing mining rights (Chelmsford, Vlakvarkfontein and Witbank) and key mining contractors selected, the logistics and marketing arrangements with Ulwazi allow Continental to continue with its rapid development plans.
In addition the Company has completed a Placement of 60,000,000 Ordinary Fully Paid Shares at an issue price of 5 cents and 30,000,000 Listed Options (5 cents, 13 February 2013) to Sophisticated and Institutional Investors raising A$3m to develop the Company’s South African Chelmsford Coal Project.
Please find attached an Appendix 3B in respect of the Placement.
For and on behalf of the Board Yours faithfully PETER LANDAU Executive Chairma
CCC Price at posting:
60.0¢ Sentiment: None Disclosure: Not Held
