Wrap Text
Condition satisfied for the draw down of the IDC loan
MC Mining Limited
Previously Coal of Africa Limited
(Incorporated and registered in Australia)
Registration number ABN 008 905 388
ISIN AU000000MCM9
JSE share code: MCZ
ASX/AIM code: MCM
ANNOUNCEMENT 21 July 2020
CONDITION SATISFIED FOR THE DRAW DOWN OF THE IDC LOAN
Further to the announcement published on 6 July 2020, MC Mining Limited (“MC Mining” or the
“Company”) is pleased to confirm the satisfaction of the condition in the restructured loan agreement
(the "Agreement”) with the Industrial Development Corporation of South Africa Limited (“IDC”). This
condition required the Company to secure commitments for the issue of new equity (“New Equity”),
for a collective R15.0 million ($0.9 million*). In terms of the Agreement, the Company will now draw
down R40 million ($2.4 million). These funds will be used to advance the Makhado hard coking coal
project (“Makhado Project” or “Makhado”) and for general working capital.
The New Equity will be issued at an agreed price of 105.56 SA cents/ 6.27 pence (United Kingdom), a
9% discount to MC Mining’s closing share price on Friday 17 July 2020. This will result in the issue of
approximately 14.2 million new ordinary shares in the Company. The IDC will receive an estimated 1.1
million warrants, equating to 0.8% of MC Mining’s issued shares, and its direct participation in the
Makhado Project will increase from 5% to 6.7%. The New Equity will be issued following South African
Reserve Bank approval, necessary for certain tranches of the new MC Mining shares. Reserve Bank
approval is an administrative step and the approval is anticipated in early August 2020 and a further
announcement confirming the exact number of shares and warrants and date of admission to trading
on the ASX, AIM and the JSE will be made at that point.
The Company previously secured a R245 million ($14.4 million) loan facility from the IDC. This is the
initial step in the R535 million ($31.5 million) composite debt/equity funding package to develop
Phase 1 of Makhado. MC Mining is in advanced discussions for the balance of the funding required
and construction is anticipated to commence in Q4 CY2020/Q1 CY2021. Phase 1 has a nine-year life-
of-mine and is forecast to produce 540,000 tonnes (“t”) of hard coking coal annually as well as
570,000t of an export quality thermal coal by-product.
Brenda Berlin, MC Mining’s Acting CEO, commented: “The issue of the New Equity to existing and new
shareholders underlines the robust fundamentals and compelling returns of the Makhado Project.
This is a further significant step for MC Mining and we will now focus on securing the balance of the
Phase 1 funding, delayed by the COVID-19 lockdown. The Company will also continue negotiations to
defer the November 2020 repayment of existing debt owing to the IDC until the Makhado Project is
generating positive cash flows.”
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 MC Mining Limited +27 10 003 8000
Officer
Tony Bevan Company Secretary Endeavour Corporate +61 08 9316 9100
Services
Company advisors:
Ross Allister/David McKeown Nominated Adviser and Peel Hunt LLP +44 20 7418 8900
Broker
James Duncan Financial PR (South R&A Strategic +27 11 880 3924
Africa) Communications
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 the 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.
Statements of intention
Statements of intention are statements of current intentions only, which may change as new information
becomes available or circumstances change.
MC Mining has ensured that the mineral resources quoted are subject to good governance arrangements and
internal control. The Company has engaged external independent consultants to update the mineral resource
in accordance with the JORC Code 2012 and SAMREC 2016. The units of measure in this report are metric, with
Tonnes (t) = 1,000kg. Technical information that requires subsequent calculations to derive subtotals, totals and
weighted averages may involve a degree of rounding and consequently introduce an error. Where such errors
occur MC Mining does not consider them to be material.
Date: 21-07-2020 10:00:00
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