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MC Mining receives first quarterly payment of R11m for Mooiplaats sale

30th August 2018

By: Marleny Arnoldi

Deputy Editor Online

     

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The Department of Mineral Resources (DMR) has timeously approved the requisite Section 102 application that was necessary to complete MC Mining’s Mooiplaats colliery sales transaction.

The company has also received the first quarterly payment of R11.3-million.

MC Mining announced in October last year that it had sold its shares and claims in the Mooiplaats thermal colliery for R179.9-million.

The process of the sale started in 2013, in efforts to clean up MC Mining’s balance sheet, since the disposal will result in estimated yearly cost savings of R18-million, while the quarterly payments will be used to develop MC Mining’s flagship Makhado hard coking coal project.

The conditions precedent for the transaction were satisfied in November last year, resulting in the company receiving the initial sale proceeds of R67-million.

The timing of the ten equal quarterly payments to settle the remaining balance of R112-million was scheduled to start during August, but was dependent on the DMR approving the Section 102 application to incorporate certain prospecting rights into the colliery’s mining right, failing which the payments would have been delayed.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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