Continental Coal deal approved

Village Main Reef had received approval from the Reserve Bank to acquire a shareholding in Australian-listed thermal producer Continental Coal, it said on Friday. This was the only outstanding approval needed for the firm to proceed with the deal, in which it will increase its shareholding to 19.9 percent in Continental. Both companies expect the completion and financial settlement of the placement next week and the issuing of the shares to Village thereafter. The acquisition is part of Village’s strategy to become a diversified mining company. The approval will allow Village to subscribe for 100 million ordinary shares in Continental at an issue price of A$0.08 (74c) a share, raising a total of A$8 million. Continental is targeting a run of mine production rate of 10 million tons a year by the end of 2015. Village’s stock dropped 4.62 percent to close at 62c on Friday. – Dineo Faku