10 October 2014
Company Announcements Office
Australian Securities Exchange
Level 6, 20 Bridge Street
SYDNEY NSW 2000
Via E Lodgement
Corporate Update
The board of Continental Coal Limited (ASX:CCC; AIM:COOL)("Continental" or "the
Company") wishes to advise shareholders that subsequent to the completion of
the Rights Issue (see ASX announcement dated 30 September 2014) it has been
presented with offers from third parties interested in acquiring its 74%
interest in South African subsidiary Continental Coal Limited SA ("CCL SA").
The offers include proof of funds and are also of a quantum which provides for
the satisfaction of key debts at both the parent and 74% subsidiary level
(namely ABSA and EDF) in accordance with negotiations that have been ongoing
since the new Board was appointed in February 2014. The offers (if accepted and
completed) would leave the company with excess cash reserves at its disposal
and the ability to pursue new opportunities that have been presented to it.
Currently the Board is finalising legal advice with regards to a scenario
whereby an accepted offer is announced and Shareholders are then offered the
opportunity to have their funds returned from the Rights Issue, remain in a
new raising by way of a supplementary prospectus or participate in the new
raising given the change in circumstances which some Shareholders may want to
participate in as opposed to the previous Rights Issue.
It is expected that an announcement detailing the outcome of this
consideration, together with advice received, will be released to the ASX and AIM on or
before Tuesday 14 October 2014.
For and on behalf of the Board
Peter Landau
Executive Director
For further information please contact:
Investors | Shareholders Media (Australia)
Peter Landau David Tasker
Continental Coal Limited Professional Public Relations
T: + 61 8 9488 5220 T: +61 8 9388 0944
E: peter@conticoal.com E : David.Tasker@ppr.com.au
Nominated Advisor Brokers(UK)
Oliver Morse/Trinity McIntyre Jonathan Williams
RFC Ambrian Limited RFC Ambrian Ltd
T: +61 8 9480 2500 T : +44 203 440 6817
About Continental Coal Limited
Continental Coal Limited (ASX:CCC/AIM: COOL) is a South African thermal coal
producer with a portfolio of projects located in South Africa's major coal
fields including two operating mines, the Vlakvarkfontein and Penumbra Coal
Mines, producing approx. 2Mtpa of thermal coal for the export and domestic
markets. A Feasibility Study was also completed on a proposed third mine, the
De Wittekrans Coal Project with a mining right granted in September 2013.
Forward Looking Statement
This communication includes certain statements that may be deemed
"forward-looking statements" and information. All statements in this
communication, other than statements of historical facts, that address future
production, reserve potential, exploration drilling, exploitation activities
and events or developments that the Company expects to take place in the future
are forward-looking statements and information. Although the Company believes
the expectations expressed in such forward-looking statements and information
are based on reasonable assumptions, such statements are not guarantees of
future performance and actual results or developments may differ materially
from those in the forward-looking statements and information. Factors that
could cause actual results to differ materially from those in forward-looking
statements include market prices, exploitation and exploration successes,
drilling and development results, production rates and operating costs,
continued availability of capital and financing and general economic, market or
business conditions. Investors are cautioned that any such statements are not
guarantees of future performance and actual results or developments may differ
materially from those stated.
South Africa Australia
T +27 11 881 1420 F +27 862064487 T +61 8 9488 5220 F +61 8 9324 3400
www.conticoal.com www.conticoal.com
9th Floor Fredman Towers, 13 Fredman Ground Floor, 1 Havelock Street, West
Drive, Sandton 2196 Perth, WA 6005
PO Box 787646, Sandton 2146 PO Box 684, West Perth, WA 6872
Interim Executive Chairman: Dr Paul D'Sylva Interim Executive Director: Mr Peter Landau
Non-Executive Directors: Mr Connie
Molusi and Dr Lars
Schernikau