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http://www.proactiveinvestors.co.uk/companies/news/33133/continental-coal-raises-us65-million-ahead-of-its-cool-flotation-on-aim-33133.html

South African coal miner Continental Coal (ASX:CCC) has raised US$65 million ahead of next week’s planned arrival of the company’s shares on London’s Alternative Investment Market, where their designated EPIC code will be ‘COOL’.

The bulk of the funds will be used for the development of Continental’s third coal mine in South Africa. This mine, known as the Penumbra Coal Project, is forecast to increase its run-of-mine production to a targeted annual rate of 750,000 tonnes of coal in the third quarter of next year.

The principal earthworks contractor for the project has begun civil and construction earthworks, including initial ground breaking at the site.

The financing has come from ABSA Capital, which is a division of one of South Africa’s largest financial services providers: ABSA Bank (a subsidiary of Barclays Bank). Continental announced today that it had received final credit approval and that due diligence had been finished, with legal documentation nearing completion.

The financing agreement includes a seven-year term loan facility of US$35 million to be made available to fund the development of the Penumbra mine, as well as a three-year term loan facility of US$15 million to be made available to refinance existing secured indebtedness under the coal prepayment deal that Continental has with EDF Trading. It also includes a secured annually-renewable working capital facility of ZAR100 million (approximately US$15 million) to fund general corporate working capital requirements.

“The development of the Penumbra Mine, our third coal mine in South Africa, is of strategic importance for our overall growth plans and therefore to have secured funding for this project is very important to the company and its shareholders,” said Don Turvey, Continental’s chief executive officer. “The fact that we received two very attractive financing offers for this mine is testament to the feasibility studies we conducted and the subsequent mine development plan chosen.”

The firm’s two existing mines, Vlakvarkfontein and Ferreira, produce approximately two million tonnes of coal per annum for both export and domestic markets Continental has stated that it also has a portfolio of nine additional coal development and advanced exploration projects, and that it intends to develop two further themal coal mines this year.

In its 2010/2011 financial year, Continental produced 1,290,000 tonnes of run-of-mine thermal coal, which included 962,187 tonnes of domestic-quality thermal coal and 327,962 tonnes of export-quality coal. The firm is targeting run-of-mine production from 2013 of seven million tonnes per annum.

South Africa is a country that is well-known for having issues with electricity supply, and blackouts are commonplace. So, Continental is increasing its coal production in an environment where increasing use of coal-fired power stations is not only tolerated, but encouraged.

For example, last year the go-ahead was given for one of the world’s biggest coal-fired power stations to be built in the country in spite of protests from green groups citing environmental concerns.

The company said its flotation on AIM, planned for September 19, is designed to increase its access to global financial markets, further diversify the firm’s shareholder base and (together with its existing listing on the Australian Securities Exchange) provide a stronger platform from which to consider acquisition opportunities.

The link goes to the announcement regarding VILLAGE MAIN REEF purchasing 19.99% of Continental, which is great news.

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Don Turvey, Chief Executive Officer of Continental Coal to present at Mining and Resource Evening in London on 17th October 2013

Following the resounding success of our previous evening events, Shares Magazine is pleased to be to offer another chance for investors to meet, hear from and ask questions of key senior management figures from carefully selected companies.

This event offers a unique opportunity not only to hear about the latest plans from some of the most exciting companies in the sector, but also to put your questions to the people that matter. What is more, there is a free drinks and canapés reception where you can mingle with industry leaders and your fellow investors. Make sure you don't miss this unique opportunity to get the answers you need from the people who make the market.

Tickets are completely free but places are strictly limited so register now.

Date: Thursday 17th October 2013

Venue: Novotel Tower Bridge, 10 Pepys Street, London EC3N 2NR

Registration: 6.00pm

REGISTER FOR LONDON EVENT NOW

Presentations: 6.30pm followed by a drinks/canapés reception

Companies Presenting:

CHAARAT GOLD

Chaarat Gold (AIM:CGH) is an exploration and development company operating in the Kyrgyz Republic. Situated in the highly prospective Tien Shan gold belt, a JORC compliant resource of 5.76Moz at a grade of 4.03g/t has been delineated at the Chaarat Gold Project. The Company's key objective is to become a low cost gold producer targeting annual production of 200,000 ounces from the development if the Chaarat Gold Projet.
Speaker: Dekel Golan, CEO
Continental Coal (AIM:COOL)

Continental Coal Limited (ASX:CCC/AIM: COOL/US-OTC QX:CGFAY) is a South African thermal coal producer with a portfolio of projects located in South Africa’s major coal fields including three operating mines, the Penumbra, Ferreira and Vlakvarkfontein Coal Mines, producing 2.8Mtpa of thermal coal for the export and domestic markets. A Bankable Feasibility Study has been completed on a proposed fourth mine, the De Wittekrans Coal Project. Continental Coal also has 3 large thermal coal exploration leases in Botswana, with a JORC resource of 2.2Bt, and a further exploration target of 8.9Bt.

Speaker: Don Turvey, Chief Executive Officer
Fox Marble (AIM:FOX)

Fox Marble Holdings PLC is a natural stone extraction company operating in Kosovo and the Balkans region, with headquarters in the United Kingdom. Established in 2011, Fox Marble has access to over 300 million cubic metres of premium quality marble including white breccia and honey yellow onyx.

Speaker: Chris Gilbert, CEO
Tangiers Petroleum (AIM:TPET)

Tangiers is an ASX listed exploration company which has a portfolio of two potentially world class oil and gas assets located in Morocco and Australia.
Tangiers Moroccan assets include the highly prospective Tarfaya offshore block.
In Australia, assets include the significant Nova and Super Nova gas prospects located offshore Northern Australia.
Speaker: Eve Howell, Executive Chairman

Link to Continental Coal presentation at our event on 17th Oct 2013