Continental Coal (ASX: CCC) has gone into an ASX trading halt as it prepares an update regarding the conclusion of a strategic corporate transaction.
The halt will last until the earlier of an announcement being made to the market, or the opening of trade on Tuesday 19th March 2013.
Continental had said earlier this month that it would use the $10 million from the sale of its non-core shareholding in the Vanadium and Magnetite Exploration and Development Co (SA) (Pty) Limited towards acquiring all outstanding minority interests in Mashala Resources not already held by the company’s principal and 74% owned subsidiary in South Africa - Continental Coal (CCL).
This will give CCL a 100% interest in the operating Ferreira Coal Mine and Penumbra Coal Mine.
Continental Coal's portfolio of projects includes three operating mines, the Vlakvarkfontein, Ferreira and Penumbra Coal Mines, which are set to produce at an annualised rate of 2.8Mtpa of thermal coal for the export and domestic markets.
The Penumbra Coal Mine produced first coal in November 2012.
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