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(Alliance News) - MC Mining Ltd said Wednesday it has gained approval from the South African Reserve Bank for the issue of new equity to raise ZAR15.0 million.
The coal miner can now proceed with issuing 13.3 million shares at an agreed price of 105.56 rand cents each.
A commitment for the issue of the new shares was a condition in the ZAR40 million restructured loan agreement with the Industrial Development Corp of South Africa in order to advance the Makhado hard coking coal project, as well as for working capital.
The IDC is to receive around 1.1 million warrants, equal to 0.8% of MC Mining's issued shares, and its direct interest in Makhado will increase to 6.7% from 5%.
Shares in MC Mining were untraded on Wednesday in London, last quoted at 5.50 pence. Its Johannesburg shares were also untraded at ZAR1.33.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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