The fund raising will allow the company to complete its planned recapitalisation and restructure of its balance sheet, substantially reducing its total indebtedness and its subsidiaries, Continental said.
“The offer has received strong support from institutional and sophisticated investors in Australia, Europe and South Africa as well as a number of commodity trading groups and specialist coal mining investment funds,” the company said.
A priority sub-underwriting agreement in respect of $25 million of any shortfall under the offer has been executed and general sub-underwriting agreements for an additional $10.1 million of the Shortfall also having been executed.
“The offer is being completed after reaching standstill agreements with key unsecured convertible note and royalty holders and advanced negotiations of its coal supply agreement with EDF Trading and with ABSA Bank (in respect to the debt financing for the Penumbra coal mine) being ongoing and productive,” Continental said.
