news out columbian coal option, page-2

EXCLUSIVE OPTION SECURED OVER OPERATING COLOMBIAN COKING COAL PROJECT
Key points:
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Continental has entered into an exclusive option for the potential acquisition of a 50% joint venture interest in a producing hard coking coal mine in Colombia
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Acquisition aligned with Continental’s strategic objective to diversify its coal mining operations geographically and into the higher margin coking coal market
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New limited recourse debt and commodity linked facility to fund the approx. US$15m potential acquisition
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Continental to assist in funding and developing existing operational mine with existing management to increase production and to accelerate near mine exploration
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Due diligence being finalised with Golder Associates, BDO, Brigard & Urrutia and with Continental’s management
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A$5 million convertible note facility finalised with Bergen Global Opportunity Fund LP


Continental Coal Limited (ASX: CCC/ AIM: COOL) (“Continental” or the “Company”) the South African thermal coal production, development and exploration company, is pleased to announce that it has entered into an exclusive agreement to acquire a 50% joint venture interest in an operating hard coking coal mine located in Colombia.

The acquisition of this well established and high quality hard coking coal mining operation will complement the Company’s existing thermal coal mining, development and exploration projects in South Africa. The acquisition will further diversify its production base geographically into another of the world’s leading coal producing and export nations from a product base into the hard coking coal market.

Subject to completion of satisfactory due diligence it is proposed that Continental will acquire a 50% joint venture in five mining concessions/contracts covering over 1,500 hectares and including the existing underground mine that has been in operation for 24 years and adjacent exploration ground.

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