MC Mining Limited FURTHER ENCOURAGING SUPPORT FOR MC MINING (9946X)
September 04 2020 - 2:00AM
UK Regulatory
TIDMMCM
RNS Number : 9946X
MC Mining Limited
04 September 2020
ANNOUNCEMENT
4 September 2020
FURTHER ENCOURAGING SUPPORT FOR MC MINING
MC Mining Limited ("MC Mining" or the "Company") is pleased to
announce the conclusion of a Subscription Agreement (the
"Agreement") with Columbia Skies Holdings Proprietary Limited
("CSH"). CSH is wholly-owned by Mr Pitso Madibo, a black
industrialist, and the Agreement will result in CSH subscribing for
7,831,785 ordinary MC Mining shares (the "CSH Shares"). The
Agreement is conditional upon South African Reserve Bank approval,
an administrative process, and is anticipated during September
2020.
The CSH Shares will be allotted in terms of the Company's ASX
approved capacity and subject to Reserve Bank approval, will be
issued at a 10% discount to the 30-day JSE VWAP to 1 September
2020, being R1.27/share. The issue of the CSH Shares will raise
approximately R10.0 million ($0.6 million*) for MC Mining and will
result in CSH having a 4.8% interest in the Company. These funds
will be used for general working capital requirements as well as
progressing the Company's flagship Makhado hard coking coal project
("Makhado Project" or "Makhado").
Application will be made for the admission of the 7,831,785 new
ordinary shares to trading on AIM, the ASX and the JSE and an
announcement will be made in due course. Following admission of the
New Equity, the Company will have 162,251,340 ordinary shares in
issue. This figure can be used as the denominator for calculations
by which shareholders determine if they are required to notify
their interest in, or a change to their interest in the Company,
under the ASX Listing Rules or the DTRs.
Br enda Berlin, MC Mining's Acting CEO, commented: " MC Mining
previously secured a R245 million ($14.8 million) loan from the
Industrial Development Corporation of South Africa Limited, a
critical component in the Makhado Phase 1 debt/equity funding
structure. We have made significant progress subsequent to the
lifting of the COVID-19 lockdown and are in discussions with
various potential funders for the balance of the Phase 1 funding.
The investment by CSH ensures we have the necessary resources to be
able to complete the composite funding package, anticipated to be
by the end of CY2020, as well as providing working capital for the
initial period of construction in H1 CY2021."
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 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.
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