Heads Of Agreements For The Makhado Project Funding and Associated EPC and Mining Contracts
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 6 September 2018
HEADS OF AGREEMENTS FOR THE MAKHADO PROJECT FUNDING AND ASSOCIATED
EPC AND MINING CONTRACTS
MC Mining Limited (“MC Mining” or the “Company”) has signed Heads of
Agreements (“HOAs”) with leading international Chinese construction
enterprise, China Railway International Group Co., Ltd. (“CRIG”). CRIG
is the international focused division of China Railway Group, a
leading global construction company listed in Shanghai and Hong Kong.
Under the terms of the HOAs, the Company and CRIG have agreed to
negotiate a package that comprises the engineering, procurement and
construction (“EPC”) for the Makhado hard coking and thermal coal
project (“Makhado Project”) coal handling and processing plant,
financing for 85% of the EPC costs and contract mining operations,
conditional upon the finalisation of terms and conditions by June
2019. These include completion of the Makhado front end engineering
and design study and agreement on the EPC contract price by both
parties, as well as appropriate funding provided on acceptable terms.
The development of the Makhado Project is expected to facilitate
economic growth in the Limpopo province and the Company will keep the
market appraised on further progress with regards to the ongoing
discussions with CRIG. Off-take discussions for hard coking and export
thermal coal production from Makhado are ongoing with various parties.
David Brown, CEO commented:
“This is an extremely positive move as it represents international
recognition for the world class nature of the Makhado Project.”
Chief Executive Officer
For more information contact:
David Brown Chief Executive MC Mining Limited +27 10 003 8000
Brenda Berlin Chief Financial MC Mining Limited +27 10 003 8000
Tony Bevan Company Secretary Endeavour Corporate +61 08 9316
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/James Bavister 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 coal), Makhado Project (coking and thermal coal). Vele Colliery (coking
and thermal coal), and the Greater Soutpansberg Projects (MbeuYashu).
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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