The Australian-listed, South African thermal coal producer has sold its interest in Vanadium and Magnetite Exploration and Development Co.

It has received an initial $1 million payment and expects to get the other $9 million in the March quarter.

Continental has used the $1 million received so far to meet part of the 76 million rand ($8.6 million) purchase price for the outstanding minority interests in Mashala Resources it does not already own.

The company has also reached an agreement with Mashala’s minority holders to extend the deadline to acquire those interests to February 28.

By then it expects to have the remaining $9 million and will use that to pay the rest.

Continental chief executive Don Turvey said proceeding with the financial settlement of the company’s stake in VanMag was a step forward for the company.

“The proceeds from the VanMag settlement will be used to fund the acquisition of the outstanding minority interests in Mashala and provide our principal subsidiary in South Africa with 100% interests in the operating Ferreira and Penumbra export thermal coal mines and the De Wittekrans coal project that is forecast to become the company’s fourth coal mine,” he said.