27 September 2013
By e-lodgement
CONSENT GRANTED TO TRANSFER PROSPECTING RIGHT FOR VAALBANK PROJECT
Continental Coal Limited (ASX: CCC) ("Continental" or "the Company") the South
African thermal coal production, development and exploration company, is
pleased to announce that the South African Department of Mineral Resources
("DMR") has granted their consent for the transfer of the prospecting right
required to commence our Vaalbank coal exploration project.
The Vaalbank coal exploration project is located adjacent to Total Coal's
Forzando Colliery. This exploration project consists of a 50:50 joint
exploration program with Forzando Coal, 74% owned by Total Coal South Africa, a
subsidiary of international energy company, Total. Forzando Coal has been
operating for more than 25 years in South Africa and currently produces over
4Mtpa of export quality thermal coal from the Dorstfontein Coal Mine, Forzando
North and South Coal Mines and Tumelo Coal Mine. Under the terms of the joint
exploration program, the Group and Forzando Coal will commence a two phase
exploration program comprising of 20 exploration holes upon approval by both
companies.
Commenting on obtaining consent for the transfer of the prospecting right,
Continental Chief Executive Officer, Mr Don Turvey said:
"Obtaining the consent to transfer the prospecting right for our Vaalbank coal
exploration project now allows Continental and Forzando Coal to commence with
the detail planning and scheduling of the exploration program. Initial review
studies indicated the potential for an economic mineable resource and we
believe the proposed exploration program will not only support this but also
provide the initial data required to commence with a pre-feasibility study."
For and behalf of the Board
Don Turvey
Chief Executive Officer
For further information please contact:
Investors/ shareholders
Don Turvey
Chief Executive Officer
Lou van Vuuren
Chief Financial Officer
T: +27 11 881 1429
E: admin@conticoal.com
W: www.conticoal.com
Media (Australia)
David Tasker
Professional Public Relations
T: +61 8 9388 0944
Nominated Advisor
Stuart Laing
RFC Ambrian Limited
T: +61 8 9480 2500
Broker
Jeremy Wrathall / Chris Sim
Investec Bank plc
T: +44 20 7597 4000
About Continental Coal Limited
Continental Coal Limited (ASX:CCC/AIM: COOL) is a South African thermal coal
producer with a portfolio of projects located in South Africa's major coal
fields including three operating mines, the Vlakvarkfontein, Ferreira and
Penumbra Coal Mines, producing approx. 2.8Mtpa of thermal coal for the export
and domestic markets. A Feasibility Study was also completed on a proposed
fourth mine, the De Wittekrans Coal Project. The Company has concluded
strategic off-take and funding agreements with EDF Trading for its export
thermal coal production and secured debt funding from ABSA Capital to fund its
growth.
Forward Looking Statement
Certain statements made during or in connection with this communication,
including, without limitation, those concerning the economic outlook for the
coal mining industry, expectations regarding coal prices, production, cash
costs and other operating results, growth prospects and the outlook of
Continental's operations including the likely commencement of commercial
operations of the De Wittekrans project, its liquidity and the capital
resources and expenditure, contain or comprise certain forward-looking
statements regarding Company's development and exploration operations, economic
performance and financial condition.
Although the Company believes that the expectations reflected in such
forward-looking statements are reasonable, no assurance can be given that such
expectations will prove to have been correct. Accordingly, results could differ
materially from those set out in the forward-looking statements as a result of,
among other factors, changes in economic and market conditions, success of
business and operating initiatives, changes in the regulatory environment and
other government actions, fluctuations in coal prices and exchange rates and
business and operational risk management. For a discussion of such factors,
refer to the Company's most recent annual report and half year report. The
Company undertakes no obligation to update publicly or release any revisions to
these forward-looking statements to reflect events or circumstances after
today's date or to reflect the occurrence of unanticipated events.
