As part of the divesture, the company has received an initial non-refundable payment of $1m and will later secure a final settlement of $9m during March 2013 quarter.
Vanmag is a South African mineral exploration and mining company with mineral leases on five contiguous farms covering 17,188 acres of Bushveld Complex.
Continental chief executive officer Don Turvey stated that it is extremely pleasing to have finally divested the non-core asset and to receive a $1m settlement from the total net proceeds of $10m.
"The proceeds from the VanMag settlement will be used to fund the acquisition of the outstanding minority interests in Mashala and provide our principal subsidiary in South Africa with 100% interests in the operating Ferreira and Penumbra export thermal coal mines and the De Wittekrans Coal Project that is forecast to become the Company’s fourth coal mine," Turvey added.
