RNS - Further Support for MCM4 Sep 2020 08:07
RNS Number : 9946X
MC Mining Limited
04 September 2020
ANNOUNCEMENT
4 September 2020
FURTHER ENCOURAGING SUPPORT FOR MC MINING
MC Mining Limited ("MC Mining" or the "Company") is pleased to announce the conclusion of a Subscription Agreement (the "Agreement") with Columbia Skies Holdings Proprietary Limited ("CSH"). CSH is wholly-owned by Mr Pitso Madibo, a black industrialist, and the Agreement will result in CSH subscribing for 7,831,785 ordinary MC Mining shares (the "CSH Shares"). The Agreement is conditional upon South African Reserve Bank approval, an administrative process, and is anticipated during September 2020.
The CSH Shares will be allotted in terms of the Company's ASX approved capacity and subject to Reserve Bank approval, will be issued at a 10% discount to the 30-day JSE VWAP to 1 September 2020, being R1.27/share. The issue of the CSH Shares will raise approximately R10.0 million ($0.6 million*) for MC Mining and will result in CSH having a 4.8% interest in the Company. These funds will be used for general working capital requirements as well as progressing the Company's flagship Makhado hard coking coal project ("Makhado Project" or "Makhado").
Application will be made for the admission of the 7,831,785 new ordinary shares to trading on AIM, the ASX and the JSE and an announcement will be made in due course. Following admission of the New Equity, the Company will have 162,251,340 ordinary shares in issue. This figure can be used as the denominator for calculations by which shareholders determine if they are required to notify their interest in, or a change to their interest in the Company, under the ASX Listing Rules or the DTRs.
Br enda Berlin, MC Mining's Acting CEO, commented: " MC Mining previously secured a R245 million ($14.8 million) loan from the Industrial Development Corporation of South Africa Limited, a critical component in the Makhado Phase 1 debt/equity funding structure. We have made significant progress subsequent to the lifting of the COVID-19 lockdown and are in discussions with various potential funders for the balance of the Phase 1 funding. The investment by CSH ensures we have the necessary resources to be able to complete the composite funding package, anticipated to be by the end of CY2020, as well as providing working capital for the initial period of construction in H1 CY2021."
Brenda Berlin
Acting Chief Executive Officer