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Uitkomst Asset Finance Banking Facility Secured
MC Mining Limited
Previously Coal of Africa Limited
(Incorporated and registered in Australia)
Registration number ABN 008 905 388
ISIN AU000000MCM9
JSE share code: MCZ
ASX/AIM code: MCM
ANNOUNCEMENT 16 August 2018
UITKOMST ASSET FINANCE BANKING FACILITY SECURED
MC Mining Limited (the “Company") which operates in South Africa, is
pleased to announce that its 70% owned Uitkomst Colliery (“Uitkomst”
or the “Colliery”) has procured a revolving asset finance facility
(the “Facility”) from ABSA Bank Limited (“ABSA”), one of South
Africa’s major financial service providers. Uitkomst intends to
utilise the Facility to finance the acquisition of new underground
mining equipment following the transition to owner-operated mining at
the Colliery on 1 August 2018.
The rolling five-year, R15 million (US$1.0 million) Facility is
subject to a floating coupon at the South African Prime rate (currently
10.0% per annum) plus 0.5% and is secured by the mining equipment
purchased.
As previously announced on 2 August 2018, Uitkomst acquired the
independent mining contractor Khethekile Mining (Pty) Ltd’s
("Khethekile") business operations at the Colliery for a total cost
of R65 million (US$4.4 million). The underground mining operations
had previously been undertaken by Khethekile and in terms of a Sale
of Business Agreement, Uitkomst acquired all of Khethekile's mining
equipment (including conveyor systems and coal mining and
transportation equipment) and took transfer, in accordance with
section 197 of the Labour Relations Act of South Africa, of some 340
Khethekile employees working at the Colliery and at Khethekile's
Newcastle offices.
David Brown, MC Mining’s Chief Executive Officer commented:
“The ABSA Facility reflects the growing confidence that financial
institutions have in MC Mining and the execution of our strategy. The
acquisition of new mining equipment and integration of the recently
acquired underground mining operations will result in improved
equipment availability and contribute to the production enhancement
initiatives at the Colliery, ensuring Uitkomst is positioned to
benefit from prevailing higher international coal prices.”
AUTHORISED BY:
David Brown
Chief Executive Officer
For more information contact:
David Brown Chief Executive MC Mining Limited +27 10 003 8000
Officer
Brenda Berlin Chief Financial MC Mining Limited +27 10 003 8000
Officer
Tony Bevan Company Secretary Endeavour Corporate +61 08 9316
Services 9100
Company advisors:
Jos Simson/ Gareth Financial PR Tavistock +44 20 7920
Tredway (United Kingdom) 3150
Ross Allister/David Nominated Adviser Peel Hunt LLP +44 20 7418
McKeown/James Bavister and Broker 8900
Charmane Russell/Olwen Financial PR R&A Strategic +27 11 880 3924
Auret (South Africa) Communications
Investec Bank Limited is the nominated JSE Sponsor
About MC Mining Limited:
MC Mining is an AIM/ASX/JSE listed coal exploration, development and mining company
operating in South Africa. MCM’s key projects include the Uitkomst Colliery
(metallurgical coal), Makhado Project (coking and thermal coal). Vele Colliery (coking
and thermal coal), and the Greater Soutpansberg Projects (MbeuYashu).
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 MCM’s ability to control or estimate precisely,
such as future market conditions, changes in regulatory environment and the behaviour
of other market participants. MCM 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. MCM assumes no obligation and do
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.
Statements of intention
Statements of intention are statements of current intentions only, which may change
as new information becomes available or circumstances change.
Date: 16/08/2018 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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