MC Mining Limited IDC Loan Conditions Satisfied (5402T)
July 21 2020 - 4:00AM
UK Regulatory
TIDMMCM
RNS Number : 5402T
MC Mining Limited
21 July 2020
ANNOUNCEMENT 21 July 2020
CONDITION SATISFIED FOR THE DRAW DOWN OF THE IDC LOAN
Further to the announcement published on 6 July 2020, MC Mining
Limited ("MC Mining" or the "Company") is pleased to confirm the
satisfaction of the condition in the restructured loan agreement
(the "Agreement") with the Industrial Development Corporation of
South Africa Limited ("IDC"). This condition required the Company
to secure commitments for the issue of new equity ("New Equity"),
for a collective R15.0 million ($0.9 million*). In terms of the
Agreement, the Company will now draw down R40 million ($2.4
million). These funds will be used to advance the Makhado hard
coking coal project ("Makhado Project" or "Makhado") and for
general working capital.
The New Equity will be issued at an agreed price of 105.56 SA
cents/ 6.27 pence (United Kingdom), a 9% discount to MC Mining's
closing share price on Friday 17 July 2020. This will result in the
issue of approximately 14.2 million new ordinary shares in the
Company. The IDC will receive an estimated 1.1 million warrants,
equating to 0.8% of MC Mining's issued shares, and its direct
participation in the Makhado Project will increase from 5% to 6.7%.
The New Equity will be issued following South African Reserve Bank
approval, necessary for certain tranches of the new MC Mining
shares. Reserve Bank approval is an administrative step and the
approval is anticipated in early August 2020 and a further
announcement confirming the exact number of shares and warrants and
date of admission to trading on the ASX, AIM and the JSE will be
made at that point.
The Company previously secured a R245 million ($14.4 million)
loan facility from the IDC. This is the initial step in the R535
million ($31.5 million) composite debt/equity funding package to
develop Phase 1 of Makhado. MC Mining is in advanced discussions
for the balance of the funding required and construction is
anticipated to commence in Q4 CY2020/Q1 CY2021. Phase 1 has a
nine-year life-of-mine and is forecast to produce 540,000 tonnes
("t") of hard coking coal annually as well as 570,000t of an export
quality thermal coal by-product.
Br enda Berlin, MC Mining's Acting CEO, commented: "The issue of
the New Equity to existing and new shareholders underlines the
robust fundamentals and compelling returns of the Makhado Project.
This is a further significant step for MC Mining and we will now
focus on securing the balance of the Phase 1 funding, delayed by
the COVID-19 lockdown. The Company will also continue negotiations
to defer the November 2020 repayment of existing debt owing to the
IDC until the Makhado Project is generating positive cash flows.
"
Brenda Berlin
Acting Chief Executive Officer
This announcement has been approved by the Company's Disclosure
Committee.
This announcement is inside information for the purposes of
Article 7 of Regulation 596/2014.
* All figures are in South African rand or United States dollars
unless otherwise stated.
For more information contact:
Brenda Berlin Acting Chief Executive Officer MC Mining Limited +27 10 003 8000
Tony Bevan Company Secretary Endeavour Corporate Services +61 08 9316 9100
Company advisors:
Ross Allister/David McKeown Nominated Adviser and Broker Peel Hunt LLP +44 20 7418 8900
James Duncan 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. MC Mining's key
projects include the Uitkomst Colliery (metallurgical coal),
Makhado Project (hard coking coal). Vele Colliery (semi-soft coking
coal), and the Greater Soutpansberg Projects (coking and thermal
coal).
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 MC
Mining's ability to control or estimate precisely, such as future
market conditions, changes in the regulatory environment and the
behaviour of other market participants. MC Mining 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. MC Mining assumes no
obligation and does 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.
MC Mining has ensured that the mineral resources quoted are
subject to good governance arrangements and internal control. The
Company has engaged external independent consultants to update the
mineral resource in accordance with the JORC Code 2012 and SAMREC
2016. The units of measure in this report are metric, with Tonnes
(t) = 1,000kg. Technical information that requires subsequent
calculations to derive subtotals, totals and weighted averages may
involve a degree of rounding and consequently introduce an error.
Where such errors occur MC Mining does not consider them to be
material.
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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