MC Mining Limited Uitkomst Secures Primary Lending Facility (5372G)
November 07 2018 - 2:00AM
UK Regulatory
TIDMMCM
RNS Number : 5372G
MC Mining Limited
07 November 2018
ANNOUNCEMENT 7 November 2018
UITKOMST COLLIERY SECURES A PRIMARY LENDING BANKING FACILITY
MC Mining Limited ("MC Mining"), operating in South Africa, is
pleased to announce that its 70% owned Uitkomst Colliery
("Uitkomst" or the "Colliery") has secured a R20 million
(approximately $1.4 million) facility (the "Facility") from ABSA
Bank Limited ("ABSA"), a major South African financial services
provider.
Uitkomst transitioned to an owner-operated mine in August 2018
with the acquisition of the independent underground mining
contractor's business operations, which included mining equipment
and the transfer of approximately 340 contractor employees.
Following this, the Colliery secured a five year, R15 million,
asset finance facility from ABSA, used to finance new underground
mining equipment.
The cash flows generated by Uitkomst are greater than envisaged
when the Colliery was acquired in June 2017 and the Facility will
be used to fund short-term working capital requirements and
potential expansion opportunities. The Facility has a floating
coupon at the South African Prime rate (currently 10.0% per annum)
plus 1.0%, with Uitkomst debtors ceded as security and is subject
to annual review.
David Brown, MC Mining's Chief Executive Officer commented:
"The Facility further enhances our relationship with ABSA and is
an endorsement by an independent financial institution of the
potential of Uitkomst Colliery and its ability to deliver on
tonnage targets coupled with prevailing favourable coal prices. In
addition, MC Mining continues to progress with various initiatives
relating to the Makhado hard coking and thermal coal project with
further updates to come."
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 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 and thermal 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.
Regulatory
This announcement is inside information for the purposes of
Article 7 of Regulation 596/2014.
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
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contact rns@lseg.com or visit www.rns.com.
END
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