Completion of The Mooiplaats Colliery Sale Transaction
MC Mining Limited
Previously Coal of Africa Limited
(Incorporated and registered in Australia)
Registration number ABN 008 905 388
JSE share code: MCZ
ASX/AIM code: MCM
ANNOUNCEMENT 30 August 2018
COMPLETION OF THE MOOIPLAATS COLLIERY SALE TRANSACTION
MC Mining Limited (“MC Mining” or the “Company”) announced in October
2017 that it had sold its shares and claims in the Mooiplaats thermal
colliery (“Mooiplaats” or the “Colliery”) for an aggregate purchase
price of R179.9 million. The conditions precedent for the transaction
were satisfied in November 2017 resulting in the Company receiving
the initial sale proceeds of R67.0 million. The timing of the ten
equal quarterly payments to settle the remaining balance of R112.9
million was scheduled to commence during August 2018 but was dependent
on the Department of Mineral Resources (“DMR”) approving the requisite
Section 102 application to, amongst other things, incorporate certain
prospecting rights into the Colliery’s mining right, failing which
the payments would be delayed.
MC Mining is pleased to announce that the DMR has timeously approved
the requisite Section 102 application and the first quarterly payment
of R11.3 million has been received.
David Brown, CEO commented:
“The Section 102 approval was the final requirement to complete the
Mooiplaats sales process that commenced during 2013 and is another
significant step in the clean-up of the Company’s balance sheet. The
Mooiplaats disposal will result in estimated annual cost savings of
R18 million and the quarterly payments will be used to develop MC
Mining’s flagship Makhado hard coking coal project.”
Chief Executive Officer
For more information contact:
David Brown Chief Executive MC Mining Limited +27 10 003
Brenda Berlin Chief Financial MC Mining Limited +27 10 003
Tony Bevan Company Endeavour +61 08 9316
Secretary Corporate Services 9100
Jos Simson/ Gareth Financial PR Tavistock +44 20 7920
Tredway (United Kingdom) 3150
Ross Allister/David Nominated Peel Hunt LLP +44 20 7418
McKeown/James Adviser and 8900
Charmane Financial PR R&A Strategic +27 11 880
Russell/Olwen Auret (South Africa) Communications 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. MCM’s key projects include the Uitkomst
Colliery (metallurgical coal), Makhado Project (coking and thermal coal).
Vele Colliery (coking and thermal coal), and the Greater Soutpansberg
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 MCM’s ability to control or estimate precisely,
such as future market conditions, changes in regulatory environment and the
behaviour of other market participants. MCM 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.
MCM assumes no obligation and do 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.
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