REG - MC Mining Limited - IDC Loan Update

MC MiningAnnouncement

01/12/2022 09:00

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RNS Number : 2426I  MC Mining Limited  01 December 2022

 

 

ANNOUNCEMENT
1 December 2022

 

IDC LOAN UPDATE

 

MC Mining Limited (MC Mining or the Company) is pleased to announce that the
Industrial Development Corporation of South Africa Limited (the IDC) has
extended the date for repayment of the R160 million loan ($9.4 million) plus
interest thereon and the terminal draw down date of the additional R245
million ($14.4 million) loan facility for the development of the Makhado hard
coking coal project (Makhado Project or Makhado), to 30 June 2023. Draw down
of the additional R245 million ($14.4 million) loan facility remains subject
to the IDC confirming its due diligence and credit approval.

 

As announced on 28 January 2022, repayment of the R160 million loan, plus
accrued interest, was due for repayment by 30 November 2022.

 

The IDC continues to provide support for the development of the Company's
flagship, fully permitted Makhado Project. The IDC holds 6.7% equity in the
project via its interest in Baobab Mining & Exploration (Pty) Ltd (a
subsidiary of MC Mining), the owner of Makhado.

 

Background

The Makhado Project has a life of mine in excess of 22 years and robust
fundamentals, resulting in compelling economics. The development of Makhado
will position MC Mining as South Africa's pre-eminent hard coking coal
producer and is expected to deliver positive returns for shareholders. The
Company is progressing the initiatives to secure the funds required to develop
the project which will create an estimated 650 permanent job opportunities and
reduce the current imports of hard coking coal.

 

 

Godfrey Gomwe

Managing Director & Chief Executive Officer

 

This announcement has been approved by the Company's Disclosure Committee.

This announcement contains inside information for the purposes of Article 7 of
Regulation 596/2014, as it forms part of UK domestic law by virtue of the
European Union (Withdrawal) Act 2018, as amended.

All figures are in South African rand or United States dollars unless
otherwise stated.

 

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.

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