Continental Coal shares soar

Shares in Continental Coal (LON:COOL, ASX:CCC) went up almost 20% in London on Monday over the news that the junior miner is poised to sell its South African thermal coal mining assets by the end of 2012.

The thermal coal production, development and exploration company said that binding offers are due by the end of the current quarter for a significant direct investment and acquisition of all or part of the company’s South African coal assets.

The company has received several approaches from India-based coal and power utility companies, as well as major global commodity trading and private equity groups, interested in acquiring all or part of the company’s South African business.

The company also reported Monday is underground mine development activities were in advanced stages at its Penumbra thermal coal mine, in Mpumalanga.

First production is forecasted for the end of October and a ramp up to full 750,000 t/y run-of-mine production by the end of June 2013.

The project was anticipated to reach a capital cost of about A$38.5 million.