MASTER DRILLING GROUP LIMITED - Notice, as required in terms of Section 45(5) (a) of The Companies Act, 71 of 2008

Notice, as required in terms of Section 45(5) (a) of The Companies Act, 71 of 2008

Master Drilling Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 2011/008265/06)
JSE share code: MDI
ISIN: ZAE000171948
(“Master Drilling” or the “Company”)



NOTICE, AS REQUIRED IN TERMS OF SECTION 45(5) (a) OF THE COMPANIES ACT,
71 OF 2008 (THE ACT) FOR THE GRANTING OF FINANCIAL ASSISTANCE


In terms of the provisions of section 45(5)(a) of the Act, and pursuant to a special resolution
passed by shareholders authorising the board of directors ("the board") to provide direct or
indirect financial assistance to a related and inter-related company or corporation (or any
future related or inter related company or corporation), notification is hereby given by the
Company that the board adopted a resolution in terms of sections 45(3)(b) and 45(4) of the
Act, authorising the Company to grant financial assistance to an inter-related company.


Shareholders are advised that, the Industrial Development Corporation of South Africa
Limited (the “IDC”) has approved partial funding for the first phase of the Master Drilling
Blind Shaft Boring System (the “BSBS”) development, with roll-out of the project expected to
take place in 2019.


The BSBS allows for cost-effective and safe access to the ore bodies at great depths and
situated in hard substrate. With the entire operation conducted without the need for blasting,
noise or fumes which are no longer a feature of the drilling process, and environmental
impact is minimal.


As part of the arrangements envisaged above, which include co-financing by the IDC, the
Company shall provide proportional funding (the “financial assistance”) in the amount of R19
840 000.00 (Nineteen Million Eight Hundred and Forty Thousand Rand) to Master Sinkers
(Pty) Ltd with registration number 2000/016508/07 (“MS”) presently a wholly owned subsidiary
of the Company, with the IDC providing a like amount.

                                                                                                 
In accordance with section 45 of the Act, the board is satisfied and acknowledges that:


   i)      immediately after providing such financial assistance, the Company would have
           satisfied the solvency and liquidity test as provided for in section 4 of the Act; and
   ii)     the terms under which such financial assistance would be given are fair and
           reasonable to the Company.


Further opportunities to develop home-grown technologies that support cost-effective, simpler
and improved drilling systems are also being explored with the IDC.


Fochville
6 October 2017

Sponsor
Investec Bank Limited




                                                                                                

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