Village acquisition of Continental Coal stake receives final approval

South African diversified mining company Village Main Reef has received South African Reserve Bank approval for its acquisition of a shareholding in ASX- and Aim-listed thermal coal production, development and exploration company Continental Coal.
This was the only outstanding condition to Village’s proposed strategic financing transaction with Continental.
With final approval now received, the companies expected the completion and financial settlement of the placement next week, followed thereafter by the issuance of shares to Village.
Continental and Village had previously entered into binding financing agreements, which would see Village subscribing for 100-million ordinary shares in Continental at an issue price of A$0.08 a share, raising a total of A$8-million.
The transformative deal would also give Village the option to acquire further Continental shares on the market at a price of up to A$0.10 a share, thus increasing its shareholding to 19.9%.
The transaction reflected Village’s continued diversification strategy, while maintaining its investment in cash-generating assets.
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