The South African Reserve Bank has approved coal miner MC Mining’s issue of 13.3-million new shares to raise a collective R15-million, or $900 000.
The new equity is being issued at a price of 105.56c apiece.
The share issue was a condition related to a R40-million, or $2.4-million, restructured loan agreement with the Industrial Development Corporation (IDC) to advance MC Mining’s Makhado hard coking coal project, in Limpopo.
In terms of the agreement, the IDC will receive an estimated 1.1-million warrants, equating to 0.8% of MC Mining’s issued shares, and its direct participation in the Makhado project will increase from 5% to 6.7%.
The 13.3-million new ordinary shares will shortly be admitted to trading on the Aim, ASX and JSE.