MC Mining raises cash
PERTH (miningweekly.com) – Triple-listed coal miner MC Mining will raise $5.6-million, or R86-million, through a convertible advance and subscription agreement with South Africa-based Senosi Group Investment Holdings Proprietary.
Under the agreement, Senosi will subscribe for an initial 38.3-million shares in MC Mining, priced at 11c, or R1.20, a share, to raise an initial R46-million, resulting in an initial 19.9% shareholding in MC Mining.
The first tranche placement will be subject to some regulatory approvals.
Senosi has also conditionally agreed to subscribe for a second tranche of more than 33.3-million shares, to raise a further R40-million, subject to approvals, which would result in Senosi holding a 31.71% interest in MC Mining.
The subscription was subject to a number of conditions, including South African Reserve Bank and shareholder approval. MC Mining noted on Tuesday that given the anticipated lead time for obtaining these approvals, Senosi had agreed to advance funds by way of a loan, which would subsequently convert into the first tranche shares.
The first two installments of the second tranche funding will also be advanced as a loan, and the second tranche shares will be issued once the prerequisite approvals have been obtained.
If the approvals are not obtained before the end of June this year, the final two installments of the second tranche funding will not be advanced, and the loans will become repayable.
MC Mining told shareholders on Tuesday that the first tranche funding would be used to pay the vendors of the Lukin and Salaita properties, with payment due at the end of February, and to supplement the company’s working capital requirements.
The second tranche funding will be used to advance the development of the Makhado hard coking coal project, and to supplement group working capital requirements.
MC Mining this week reported a slight decline in coal production from its Uitkomst project, in South Africa, with coal production in the three months to December dropping to 107 188 t, compared with the 108 945 t produced in the previous corresponding period.
The ASX-, JSE- and Aim-listed company reported that 49 063 t of coal was sold during the December quarter, down from the 81 486 t sold in the previous corresponding period, comprising 43 280 t of high grade metallurgical and thermal coal, and 5 783 t of lower grade middlings coal.
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