[miningmx.com] — CONTINENTAL Coal said on Monday its South African subsidiary, Mashala Resources, has entered into agreements to extend the operating mine life at the Ferreira coal mine through the acquisition and development of an adjacent and adjoining prospecting right.
The prospecting right has been acquired from Misty Sea Trading in return for a market-related monthly royalty payment on each tonne of run-of-mine coal mined from the C-lower, C-upper and B-lower coal seams.
“The company is proposing to commence development of the prospecting right once relevant approvals have been obtained,’ read a company statement.
“The Company is pleased to also confirm that it is in further negotiations with additional parties to acquire further prospecting rights that are both contiguous to – and in close proximity to – the Ferreira Coal Mine on similar terms and will advise the market once these negotiations have been finalised.’
