The company has accelerated the payment of its option to acquire the minority stake to ensure that it holds a minimum 75% interest in Mashala.
The Mashala assets include the Ferreira export thermal coal mine, Delta processing operations and Penumbra and De Wittekrans export thermal coal projects.
The acquisition of the interests will provide Continental with improved operating efficiencies in South Africa, as well as increase cash flows from Ferreira Coal Mine.
CCL will fund the acquisition through $65m secured from ABSA Capital and an agreement with a Broad Based Black Economic Empowerment Group to acquire the existing 26% Black Economic Empowerment equity interest in CCL which will be complete in August 2011.
The company will also use $20m secured from ABSA to close an existing inter-company loan.
Continental has entered into an agreement with Socius CG II to divest equity interest in the Company for $20m.
Socius will now own 12.3% stake in CCL.
