The acquisition will considerably boost the company’s African project portfolio.
Yesterday, Continental received approval from the South African Reserve Bank for the transaction.
The minor thermal coal producer has set a total exploration target of 6.6 billion tonnes of coal from Mashala’s coal projects in Botswana.
By acquiring Mashala’s South African projects, Continental plans to advance up to eight South African open cut and underground projects to hit 10 million tonnes per annum by 2015.
Continental shares closed up 1.6% to 6.3c yesterday.