[miningmx.com] – CONTINENTAL Coal said it would be loaned $5m from Ivory Mint, the UK-based private equity firm that has offered to buy the South African subsidiary of Continental Coal.
The funding would be in the form of a unsecured 10% coupoin loan which would convert into either sale proceeds or a coal offtake depending on the final structure of Ivory Mint’s R876m ($75m) bid for the 74% Continental Coal owns in its.
Continental Coal ran into financial problems just under a year ago after its newly commissioned Penumbra coal mining project in South Africa’s Mpumalanga province failed to fully commission on time. The South African coal assets of Continental Coal produced 2.2 million tonnes of coal in the firm’s last financial year.
