MC Mining Limited Company Update (1788D)
March 01 2022 - 4:10AM
UK Regulatory
TIDMMCM
RNS Number : 1788D
MC Mining Limited
01 March 2022
ANNOUNCEMENT 1 March 2022
Company Update
Makhado Land Acquisition - Final Instalment Paid
On 11 January 2022, MC Mining Limited (MC Mining or the Company)
announced that its subsidiary, Baobab Mining & Exploration
(Pty) Ltd (Baobab) and the vendor of the Lukin and Salaita
properties, being the key surface rights for the Makhado hard
coking coal project (Makhado Project or Makhado), agreed to extend
the due date for payment of the balance owing of ZAR35 million
(US$2.3 million), to 28 February 2022.
MC Mining is now pleased to announce that the final instalment
of ZAR35 million has been paid by Baobab and the vendor held
mortgages over the properties are in the process of being
released.
The ZAR35 million payment was sourced from funds advanced under
the staged ZAR86 million (approximately US$5.7 million or A$7.8
million) Convertible Advance and Subscription Agreement (the
Agreement) with South African based mining group, Senosi Group
Investment Holdings Proprietary Limited (SGIH), announced by the
Company on 1 February 2022. MC Mining has already developed a
positive working relationship with SGIH and its successful track
record of developing and operating coal mines in South Africa is of
great significance as the Company moves closer to finalising a
funding package to develop the Makhado Project.
To date, SGIH has advanced ZAR40 million (US$2.6 million) to the
Company on time and in full compliance with the Agreement. An
additional ZAR6,036,691 (US$0.4 million) is due to be advanced by
31 March 2022 and, subject to approval of South Africa's Reserve
Bank, the total advances of ZAR46,036,691 will convert into
38,363,909 new ordinary MC Mining shares at ZAR1.20 per share. This
will result in SGIH owning 19.9% of the Company's total issued
share capital. The issue price of ZAR1.20 per share represents a
premium of 15% above the Company's JSE closing share price on 28
February 2022.
SGIH has also agreed to advance an additional ZAR40 million to
the Company between April and July 2022 which is to convert into
33,333,333 new ordinary shares at ZAR1.20 per share, subject to the
receipt of all required approvals, including the approval of MC
Mining's shareholders.
As announced on 28 January 2022, the Industrial Development
Corporation of South Africa Limited (IDC) agreed to extend the
repayment date for the R160 million (US$10.5 million) loan, plus
accrued interest, to 30 November 2022. The IDC also agreed to
extend the terminal drawdown date of the additional R245 million
(US$16.1 million) IDC term loan for the development of Phase 1 of
Makhado, to 30 November 2022, subject to the IDC re-affirming its
due diligence.
Mr Sam Randazzo, MC Mining's interim CEO, commented:
"Payment of the final instalment of ZAR35 million and the
release of security over key surface rights for the Makhado Project
is a significant breakthrough for MC Mining. This, together with
the funding provided by SGIH and the IDC's commitment, has the
Company well placed and in the best positon it has been for several
years to finalise the funding package required to develop the
Makhado Project."
This announcement contains inside information for the purposes
of Article 7 of Regulation 596/2014 as amended by the Market Abuse
(Amendment) (EU Exit) Regulations 2019.
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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