A trading halt has been granted by the ASX to Continental Coal (CCC) to allow the company to finalise the capital raising to complete the acquisition of Mashala Resources.
A massive 6.6 Bt exploration target has been identified at the Mashala Coal Project, in Botswana, with 2.7Bt at a shallow to moderate depth, confirmed by independent South African consulting geologists Gemecs.
The acquisition of Mashala therefore moves Continental one step closer to developing into a mid-tier Southern African coal producer.
The acquisition provides Continental with immediate export coal production from the Ferreira open cast mine which exported approximately 600,000 tonnes during financial year 2009.
Of major importance to move the coal, Mashala has Richards Bay Coal Terminal (RBCT) allocations and Transnet Freight Rail contracts in place, boosting key logistical capabilities.