MC Mining Limited Uitkomst Asset Finance Banking Facility Secured (9436X)
August 16 2018 - 2:00AM
UK Regulatory
TIDMMCM
RNS Number : 9436X
MC Mining Limited
16 August 2018
ANNOUNCEMENT 16 August 2018
UITKOMST ASSET FINANCE BANKING FACILITY SECURED
MC Mining Limited (the "Company") which operates in South
Africa, is pleased to announce that its 70% owned Uitkomst Colliery
("Uitkomst" or the "Colliery") has procured a revolving asset
finance facility (the "Facility") from ABSA Bank Limited ("ABSA"),
one of South Africa's major financial service providers. Uitkomst
intends to utilise the Facility to finance the acquisition of new
underground mining equipment following the transition to
owner-operated mining at the Colliery on 1 August 2018.
The rolling five-year, R15 million (US$1.0 million) Facility is
subject to a floating coupon at the South African Prime rate
(currently 10.0% per annum) plus 0.5% and is secured by the mining
equipment purchased.
As previously announced on 2 August 2018, Uitkomst acquired the
independent mining contractor Khethekile Mining (Pty) Ltd's
("Khethekile") business operations at the Colliery for a total cost
of R65 million (US$4.4 million). The underground mining operations
had previously been undertaken by Khethekile and in terms of a Sale
of Business Agreement, Uitkomst acquired all of Khethekile's mining
equipment (including conveyor systems and coal mining and
transportation equipment) and took transfer, in accordance with
section 197 of the Labour Relations Act of South Africa, of some
340 Khethekile employees working at the Colliery and at
Khethekile's Newcastle offices.
David Brown, MC Mining's Chief Executive Officer commented:
"The ABSA Facility reflects the growing confidence that
financial institutions have in MC Mining and the execution of our
strategy. The acquisition of new mining equipment and integration
of the recently acquired underground mining operations will result
in improved equipment availability and contribute to the production
enhancement initiatives at the Colliery, ensuring Uitkomst is
positioned to benefit from prevailing higher international coal
prices."
AUTHORISED BY:
David Brown
Chief Executive Officer
For more information contact:
David Brown Chief Executive Officer MC Mining Limited +27 10 003 8000
Brenda Berlin Chief Financial Officer MC Mining Limited +27 10 003 8000
Tony Bevan Company Secretary Endeavour Corporate Services +61 08 9316 9100
Company advisors:
Financial PR
Jos Simson/ Gareth Tredway (United Kingdom) Tavistock +44 20 7920 3150
Ross Allister/David McKeown/James
Bavister Nominated Adviser and Broker Peel Hunt LLP +44 20 7418 8900
Charmane Russell/Olwen Auret Financial PR (South Africa) R&A Strategic Communications +27 11 880 3924
Investec Bank Limited is the nominated JSE Sponsor
About MC Mining Limited:
MC Mining is an AIM/ASX/JSE listed coal exploration, development
and mining company operating in South Africa. MCM's key projects
include the Uitkomst Colliery (metallurgical coal), Makhado Project
(coking and thermal coal). Vele Colliery (coking and thermal coal),
and the Greater Soutpansberg Projects (MbeuYashu).
Forward-Looking Statements
This Announcement, including information included or
incorporated by reference in this Announcement, may contain
"forward-looking statements" concerning MC Mining that are subject
to risks and uncertainties. Generally, the words "will", "may",
"should", "continue", "believes", "expects", "intends",
"anticipates" or similar expressions identify forward-looking
statements. These forward-looking statements involve risks and
uncertainties that could cause actual results to differ materially
from those expressed in the forward-looking statements. Many of
these risks and uncertainties relate to factors that are beyond
MCM's ability to control or estimate precisely, such as future
market conditions, changes in regulatory environment and the
behaviour of other market participants. MCM cannot give any
assurance that such forward-looking statements will prove to have
been correct. The reader is cautioned not to place undue reliance
on these forward looking statements. MCM assumes no obligation and
do not undertake any obligation to update or revise publicly any of
the forward-looking statements set out herein, whether as a result
of new information, future events or otherwise, except to the
extent legally required.
Statements of intention
Statements of intention are statements of current intentions
only, which may change as new information becomes available or
circumstances change.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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