With the completion of this transaction, Village Main Reef holds 16.34% stake in Continental Coal making an investment of A$8m ($8.14m), subscribing to 100 million shares for an issue price of A$0.08 per share.
The agreement was signed by both the companies involving the sale of 19.9% stake including the sale of small shareholding facility; however 3,560 minority members opted not to offload the stakes.
Commenting on development, Continental CEO Don Turvey said: "As a result of this transaction Continental has significantly enhanced its balance sheet, streamlined its capital structure and strengthened the Company’s growth strategy and operating credentials in South Africa, with a major, well credentialed partner."
The funds raised through this placement would be used for reducing its debt, working capital requirements and strengthening of the company’s balance sheet, the company added.
