MC Mining Limited Standby Loan Facility (8581N)
June 06 2022 - 7:52AM
UK Regulatory
TIDMMCM
RNS Number : 8581N
MC Mining Limited
06 June 2022
ANNOUNCEMENT 6 June 2022
R60 MILLION STANDBY LOAN FACILITY AGREED
MC Mining Limited (MC Mining or the Company) is pleased to
announce that it has entered into a R60 million (US$3.9 million)
Standby Loan Facility (the Facility) with Dendocept (Proprietary)
Limited (Dendocept), an approximately 1.5% shareholder in the
Company. Proceeds from the Facility will be utilised to progress
early works at the Makhado hard coking coal project (Makhado
Project or Makhado), enhancement of specific areas of the Makhado
Bankable Feasibility Study and geotechnical and confirmatory
drilling programmes as well as fund group working capital.
The salient features of the Facility are:
-- Dendocept will advance up to R60 million to MC Mining's
wholly owned subsidiary, GVM Metals Administration (South Africa)
(Proprietary) Limited (GVM Admin), the group administration company
in South Africa;
-- The Facility is available for a period of 12 months from
first drawdown and must be repaid on or before the end of this
period (Final Maturity Date);
-- Interest will be paid monthly calculated using the prevailing
South African Prime interest rate (currently 8.25%) plus a margin
of 3%, similar to that levied on the current bank financing in the
group;
-- the Facility is unsecured and is guaranteed by MC Mining; and
-- the outstanding balance on the Final Maturity Date is payable
in cash or convertible to MC Mining equity at a price per share
calculated as the prevailing 30-day Volume Weighted Average Price
minus 15% on the date of conversion . Payment in MC Mining equity
is at the sole discretion of GVM Admin and the Company and is
subject to all required shareholder and regulatory approvals,
including South African exchange control approval.
The Facility does not incur any utilisation charges and can be
cancelled prior to the Final Maturity Date without penalty while
the terms do not preclude potential equity financing arrangements
for the Makhado Project, including the issue of new equity for cash
in the Company or its subsidiaries. Additional debt financing will
require the settlement of the Facility or the prior written
approval of Dendocept.
Godfrey Gomwe , CEO of MC Mining, commented :
"The Facility reflects continued shareholder support, yet
another positive step for the Company, and will contribute to group
working capital while the Makhado fund raising process is
completed. MC Mining continues to progress the remainder of the
Makhado funding requirements and anticipates that this will be
concluded in Q3 CY2022. The development of Makhado will position MC
Mining as South Africa's pre-eminent producer of high-grade
metallurgical coal with long-term hard coking coal markets
supported by growing global steel demand, driven by economic
development and urbanisation."
Authorised by
Godfrey Gomwe
Chief Executive Officer
This announcement is inside information for the purposes of
Article 7 of the Market Abuse Regulation (EU) 596/2014, as it forms
part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 (as amended).
This announcement has been approved by the Company's Board.
For more information contact:
Tony Bevan Company Secretary Endeavour Corporate Services +61 8 9316 9100
Company advisors:
James Harris / James Dance Nominated Adviser Strand Hanson Limited +44 20 7409 3494
Rory Scott Broker (AIM) Tennyson Securities Limited +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).
Statements of intention
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