MC Mining Limited Makhado Project Update (9687X)
January 11 2022 - 2:00AM
UK Regulatory
TIDMMCM
RNS Number : 9687X
MC Mining Limited
11 January 2022
ANNOUNCEMENT 11 January 2022
MAKHADO PROJECT UPDATE
On 14 January 2019, MC Mining Limited (MC Mining or the Company)
announced that its subsidiary, Baobab Mining & Exploration
(Pty) Ltd (Baobab), completed the acquisition of the Lukin and
Salaita properties, being the key surface rights for the Makhado
hard coking and thermal coal project.
As announced, the balance of the purchase price of R35 million
(US$2.2 million) (plus interest) (the Deferred Payment) was payable
by Baobab within 3 years of the transfer of the properties (or on
the earlier of certain events occurring). Accordingly, the Deferred
Payment became due on 10 January 2022.
MC Mining is currently resolving the funding required to make
the Deferred Payment and the vendor has agreed to extend the due
date for payment to 28 February 2022. Furthermore, the Company has
agreed to pay an instalment of R6 million (US$0.4 million) by 12
January 2022 which is to be deducted from the Deferred Payment now
due on 28 February. Interest shall accrue on the unpaid Deferred
Payment at the effective annual rate of 15.2%.
The Company continues to work with Baobab and its advisers to
complete the funding requirement for development of the Makhado
Project and will provide further updates to the market as required.
A further announcement will be made in due course, as and when
applicable.
As previously announced by the Company, the Industrial
Development Corporation of South Africa Limited (IDC) agreed to
extend the repayment date for the R160 million (US$10.3 million)
loan plus accrued interest to 31 January 2022. The IDC also agreed
to extend the terminal drawdown date of the additional R245 million
(US$15.7 million) IDC term loan for the development of Phase 1 of
Makhado, to 31 January 2022, subject to the IDC re-affirming its
financial due diligence.
Given the delay in finalising the Makhado Project funding the
Company also advises it has requested a further extension, to 31
May 2022, for both the repayment date of the existing R160 million
plus interest and the terminal drawdown date of the additional R245
million term loan. The IDC is yet to respond and the market will be
informed when the outcome of this request is known.
This announcement has been approved by the Company's Disclosure
Committee.
ASX: MCM / AIM: MCM.L / JSE: MCZ
For more information contact:
Sam Randazzo Interim Chief Executive Officer MC Mining Limited +61 408 945010
Tony Bevan Company Secretary Endeavour Corporate Services +618 9316 9100
Company advisors:
James Harris / James Dance Nominated Adviser Strand Hanson Limited +44 20 7409 3494
Rory Scott Broker (AIM) Tennyson Securities +44 20 7186 9031
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 and thermal
coal), Makhado Project (hard coking coal). Vele Colliery (semi-soft
coking and thermal coal), and the Greater Soutpansberg Projects
(coking and thermal coal).
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END
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