REG - MC Mining Limited - Fully Underwritten Rights Issue Offer Closes

MC MiningAnnouncement

04/11/2022 10:00

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RNS Number : 3649F  MC Mining Limited  04 November 2022

4 November 2022

FULLY UNDERWRITTEN RIGHTS ISSUE OFFER CLOSES

MC Mining Limited (MC Mining or the Company) is pleased to announce the
successful conclusion of its fully underwritten renounceable rights offer as
announced on 27 September 2022 (the Rights Issue).

 

The Right Issue has resulted in the Company raising its target A$40 million
through the issue of 200,026,719 new ordinary shares (the New Shares).
Previous announcements in relation to the Rights Issue indicated that
200,026,728 news shares would be issued and the nine share variance compared
to the New Shares is following rounding to each qualifying individual
holder.

 

Of the 200,026,719 New Shares that were offered under the Rights Issue, the
Company received total applications in respect of 107,617,686 New Shares.

 

The total shortfall, being 92,409,033 New Shares, will be issued to the
sub-underwriters of the Rights Issue  in the following proportions:

 

 Name of sub-underwriter  Number of New Shares to be issued (Rights take-up and sub-underwriting)  Number of Ordinary Shares held on Completion *  Relevant Interest (as a %) on Completion 1 

 SGIH                     56,993,546                                                               95,357,455                                      23.98%

 Dendocept Group (1)                                                                               95,357,455                                      23.98%
 - Dendocept              25,423,755                                                               28,265,593                                      7.11%
 - Golden Eagle           26,499,345                                                               26,499,345                                      6.66%
 - Pacific Coal           24,927,758                                                               24,927,758                                      6.27%
 - Golden Archer          264,845                                                                  264,845                                         0.07%
 - Jun Lui                3,387,705                                                                6,735,240                                       1.69%
 - Y He                   4,358,176                                                                8,664,674                                       2.18%

*  Senosi Group Investment Holdings Proprietary Limited (an entity that is
owned and controlled by Mr Mathews Senosi, a Director of the Company) (SGIH)
and Dendocept Proprietary Limited (Dendocept) and its associates
(collectively, the Dendocept Group) each (as applicable) took up their Rights
in full and had entered into sub-underwriting agreements with the Underwriter
for the balance of the total amount the Company was seeking to raise under the
Rights Issue. SGIH therefore was issued 38,824,276 New Shares pursuant to the
Rights Issue, and has additionally been issued 18,169,270 New Shares from
those not subscribed for or sold under the Rights Issue (for which SGIH
received a fee from the Underwriter).

 

Morgans Corporate Limited acted as Underwriter to the Rights Issue, and Joint
Lead Managers together with Adelaide Equity Partners Limited. The Company also
wishes to acknowledge the support provided by K&L Gates and Ares Capital,
the Company's legal and financial advisers, as well as by the above noted
sub-underwriters. This support was instrumental in ensuring the success of the
Rights Issue in the current volatile market and economic environment.

The Company expects to issue the New Shares the subject of the Rights Issue to
investors with a registered address in South Africa on 4 November 2022 and to
investors with a registered address in Australia or New Zealand on 8 November
2022. Quotation of these New Shares is expected to occur on the timing set out
in the timetable in Schedule 1 of the Rights Issue offer booklet (Offer
Booklet).

 

For further details in relation to the terms of the Rights Issue, and the
proposed use of proceeds, please refer to the Offer Booklet 2  a copy of which
is available at: www.mcmining.co.za (http://www.mcmining.co.za) .

 

Mr Godfrey Gomwe, Managing Director & Chief Executive Officer, commented:

 

"The encouraging result of the Rights Issue has underscored the continued
robust support of our anchor shareholders combined with the increased
opportunity for new equity participants to partake in our maturing growth
strategy. The additional capital transforms the Company's balance sheet and
marks a further key milestone towards the complete financing of the flagship
Makhado project and the positioning of MC Mining Limited as the only large
scale producer of Hard Coking Coal in the South African market."

 

Admission and Total Voting Rights

 

Application has been made for the New Shares to be admitted to trading on the
ASX, AIM and JSE markets (Admission). Admission of the New Shares to trading
on AIM is expected to become effective at 8:00 a.m. on or around 9 November
2022, and the New Shares will rank pari passu with the Company's existing
ordinary shares of no par value (Ordinary Shares).

 

On Admission, MC Mining's issued share capital shall comprise 397,681,589
Ordinary Shares. This figure may be used by shareholders in the Company as the
denominator for the calculations by which they will determine if they are
required to notify their interest in, or a change in their interest in, the
share capital of the Company under the ASX Listing Rules or the FCA's
Disclosure Guidance and Transparency Rules.

 

This announcement has been authorised and approved by the Board or an officer
of the Company with the requisite delegated authority.

 

For and on behalf of

 

MC Mining

Tony Bevan

Company Secretary

For more information contact:

 Tony Bevan                 Company Secretary  Endeavour Corporate Services      +61 08 9316 9100
 James Harris/ James Dance  Nominated Adviser  Strand Hanson Limited             +44 20 7409 3494
 Rory Scott                 Broker (AIM)       Tennyson Securities               +44 20 7186 9031
 Marion Brower              Financial PR (SA)  R&A Strategic Communications      +27 11 880 3924
 Investec Bank Limited is the nominated JSE Sponsor

About MC Mining

MC Mining is an AIM/ASX/JSE-listed coal exploration, development and mining
company operating in South Africa. MC Mining's key projects include the
Uitkomst Colliery (metallurgical and thermal coal), Makhado Project (hard
coking coal), Vele Colliery (semi-soft coking and thermal coal), and the
Greater Soutpansberg Projects (coking and thermal coal).

Forward-Looking Statements

This announcement, including information included or incorporated by reference
in this announcement, may contain "forward-looking statements" concerning MC
Mining that are subject to risks and uncertainties. Generally, the words
"will", "may", "should", "continue", "believes", "expects", "intends",
"anticipates" or similar expressions identify forward-looking statements.
These forward-looking statements involve risks and uncertainties that could
cause actual results to differ materially from those expressed in the
forward-looking statements. Many of these risks and uncertainties relate to
factors that are beyond MC Mining's ability to control or estimate precisely,
such as future market conditions, changes in regulatory environment and the
behaviour of other market participants. MC Mining cannot give any assurance
that such forward-looking statements will prove to have been correct. The
reader is cautioned not to place undue reliance on these forward-looking
statements. MC Mining assumes no obligation and does not undertake any
obligation to update or revise publicly any of the forward-looking statements
set out herein, whether as a result of new information, future events or
otherwise, except to the extent legally required.

 1  (#_ftnref1) Since Dendocept, Golden Eagle, Pacific Coal, Golden Archer,
Jun Lui and Y. He are "associates" for the purposes of the Rights Issue, their
Relevant Interests are aggregated.

 2  (#_ftnref2) Unless otherwise defined, capitalised words and terms used in
this announcement have the meanings given to them in the Offer Booklet.

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