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Uitkomst Colliery secures a Primary Lending Banking Facility
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 7 November 2018
UITKOMST COLLIERY SECURES A PRIMARY LENDING BANKING FACILITY
MC Mining Limited (“MC Mining"), operating in South Africa, is pleased
to announce that its 70% owned Uitkomst Colliery (“Uitkomst” or the
“Colliery”) has secured a R20 million (approximately $1.4 million)
facility (the “Facility”) from ABSA Bank Limited (“ABSA”), a major
South African financial services provider.
Uitkomst transitioned to an owner-operated mine in August 2018 with
the acquisition of the independent underground mining contractor’s
business operations, which included mining equipment and the transfer
of approximately 340 contractor employees. Following this, the
Colliery secured a five year, R15 million, asset finance facility from
ABSA, used to finance new underground mining equipment.
The cash flows generated by Uitkomst are greater than envisaged when
the Colliery was acquired in June 2017 and the Facility will be used
to fund short-term working capital requirements and potential
expansion opportunities. The Facility has a floating coupon at the
South African Prime rate (currently 10.0% per annum) plus 1.0%, with
Uitkomst debtors ceded as security and is subject to annual review.
David Brown, MC Mining’s Chief Executive Officer commented:
“The Facility further enhances our relationship with ABSA and is an
endorsement by an independent financial institution of the potential
of Uitkomst Colliery and its ability to deliver on tonnage targets
coupled with prevailing favourable coal prices. In addition, MC Mining
continues to progress with various initiatives relating to the Makhado
hard coking and thermal coal project with further updates to come.”
AUTHORISED BY:
David Brown
Chief Executive Officer
For more information contact:
David Brown Chief Executive MC Mining Limited +27 10 003 8000
Officer
Brenda Berlin Chief Financial MC Mining Limited +27 10 003 8000
Officer
Tony Bevan Company Secretary Endeavour Corporate +61 08 9316
Services 9100
Company advisors:
Jos Simson/ Gareth Financial PR Tavistock +44 20 7920
Tredway (United Kingdom) 3150
Ross Allister/David Nominated Adviser Peel Hunt LLP +44 20 7418
McKeown and Broker 8900
Charmane Russell/Olwen Financial PR R&A Strategic +27 11 880 3924
Auret (South 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. MCM’s key projects include the Uitkomst Colliery
(metallurgical and thermal coal), Makhado Project (coking and thermal coal). Vele
Colliery (coking and thermal coal), and the Greater Soutpansberg Projects (MbeuYashu).
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 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.
Regulatory
This announcement is inside information for the purposes of Article 7 of Regulation
596/2014.
Date: 07/11/2018 09:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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