MC Mining Ltd said on Tuesday it expects to conclude fund raising for its flagship Makhado coking coal project in Limpopo, South Africa in the second half of this year.
Shares in MC Mining firmed 8.2% to ZAR2.38 on Tuesday morning in Johannesburg. In London, the stock rose 2.7% to 9.50 pence each.
The Western Australia-based coal miner has said the larger scale Makhado project resulted in peak funding of the project increasing to ZAR1.8 billion.
It said Industrial Development Corp of South Africa Ltd remains supportive of the project. The IDC is a 6.7% shareholder in the Makhado project.
On Tuesday, MC Mining also said the IDC has extended the date for repayment of the ZAR160 million loan plus interest to September 30 from June 30, 2023.
The additional facility of ZAR245 million for the development of the fully permitted Makhado project remains subject to the IDC confirming its due diligence and credit approval and has not been extended.
This facility is based on forecast phase one production of 540,000 tonnes of hard-coking coal and 570,000 tonnes of thermal coal.
The company said last month the increased scale of Makhado has led to significantly improved economics and the project is now targeted to produce an average of 810,000 tonnes of hard-coking coal and 620,000 tonnes of thermal coal over its 28-year life of mine.
By Artwell Dlamini, Alliance News reporter
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Mc Mining (MCM)