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Makhado Project update
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
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 MC Mining Limited +61 408 945010
Officer
Tony Bevan Company Secretary Endeavour Corporate +618 9316 9100
Services
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 R&A Strategic +27 11 880 3924
Africa) Communications
11 January 2022
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).
Date: 11-01-2022 09:00:00
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