The approval pertains to a binding financing agreement, which both the companies signed with Continental offloading 19.9% cornerstone interest in the company.
Under the terms of the agreement, Continental will offer 100 million shares to Village Main at an issue price of A$0.08 per share.
Village Main Reef also agreed to facilitate the sale of parcels of shares held by shareholders with a market value of less than $500, besides acquiring additional shares of Continental for A$0.10 per share, increasing its shareholding to 19.9%.
The nod from South Africa Reserve Bank was the only outstanding condition for the strategic financing transaction between the companies.
Following this final approval, the company is working towards completion and financial settlement of the placement by the end of the month May 2013, besides issuing shares to Village Main Reef.
Continental, meanwhile, has also executed strategic off-take and funding agreements that include agreement with EDF Trading for its export thermal coal production, a joint development agreement with KORES, Korea Resources Corporation and debt funds from ABSA Capital to finance its growth.
