MC Mining Limited DEFAULT ON SUBSCRIPTION AGREEMENT (9322C)
October 22 2020 - 6:30AM
UK Regulatory
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RNS Number : 9322C
MC Mining Limited
22 October 2020
ANNOUNCEMENT
22 October 2020
DEFAULT ON SUBSCRIPTION AGREEMENT
MC Mining Limited ("MC Mining" or the "Company") on 4 September
2020 announced the conclusion of a Subscription Agreement (the
"Agreement") with Columbia Skies Holdings Proprietary Limited
("CSH"), which is wholly-owned by Mr. Pitso Madibo, a South African
industrialist. The Agreement provided for CSH to subscribe for
7,831,785 ordinary MC Mining shares (the "CSH Shares"), conditional
only upon South African Reserve Bank ("SARB") approval. SARB
approval was duly received and Mr. Madibo was notified in
accordance with the terms of the Agreement.
MC Mining regrets to report that CSH has not paid the
subscription price of approximately R10 million ($0.6 million) for
the CSH Shares as provided for in the Agreement. Both CSH and Mr.
Madibo were issued with a material default notice but did not
remedy the default within the prescribed period.
The Company continues its discussions with various potential
funders in respect of the balance of the financing required for the
development of Phase 1 of its flagship Makhado hard coking coal
project and general working capital requirements. A further
announcement will be made in due course.
Br enda Berlin, MC Mining's Acting CEO, commented: " MC Mining
is very disappointed that Mr. Madibo and his company have defaulted
on the Agreement. We have taken legal advice in this regard and
have reserved all our rights to enforce due performance by CSH and
Mr. Madibo personally."
Brenda Berlin
Acting Chief Executive Officer
This announcement has been approved by the Company's Disclosure
Committee.
This announcement contains 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:
James Harris / James Dance Nominated Adviser Strand Hanson Limited +44 20 7409 3494
Rory Scott Broker (AIM) Mirabaud Securities Limited +44 20 3167 7220
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).
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END
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