South African miner Continental Coal has announced that it received US$ 4.48 million in bridge funding to help the company make key payments to creditors. Continental also said it was making good progress with its larger recapitalization plants.
If all conditions are met, the funds will be used to pay creditors and ensure a three-month standstill period to recapitalize and restructure the company's financial arrangements.
"Importantly the company will focus on, and ensure, stability at an operational level with the company's current mining operations whilst saving significant costs at the corporate level," Continental said.
Domestic and global market
Interim chairman, Paul D'Sylva, explained that Continental Coal remained well positioned to supply the domestic and global market from two operating coal mines, Vlakvarkfontein and Penumbra, producing approximately 2 million tpa of thermal coal.
"We have received interest from a number of globally recognised energy investors/traders to participate in the company going forward, which we expect to finalise shortly," D’Sylva commented.
Continental added that it would look to strengthen its partnerships with state-owned utility Eskom, logistics group Transnet and the Richards Bay Coal Terminal.
As part of the bridge funding agreement, CEO Don Turvey, CFO Lou van Vuuren and non-executive directors Mike Kilbride and Johan Bloemsma have left the company, with Ron Chamberlain and Bernard Swanepoel having also resigned.
Edited from various sources by Katie Woodward
Read the article online at: https://www.worldcoal.com/coal/14022014/south_african_miner_receives_funding_to_pay_creditors_519/