Wrap Text
Purchase of Key Makhado Project Surface Rights Completed
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 14 January 2019
PURCHASE OF KEY MAKHADO PROJECT SURFACE RIGHTS COMPLETED
MC Mining Limited (“MC Mining") is pleased to announce that its
subsidiary, Baobab Mining & Exploration (Pty) Ltd (“Baobab”), has
completed the previously announced transaction to acquire the Lukin
and Salaita properties (the “Properties”), key surface rights required
for its Makhado hard coking and thermal coal project (“Makhado
Project” or “Makhado”).
The purchase, first announced on 15 November 2018, was conditional
upon the seller notifying and addressing any concerns regarding the
transaction raised by the Limpopo Province regional land claims
commissioner (the “Commissioner”). The Commissioner did not object to
the transaction during the legislated 30-day notification period and
the Deeds Office has subsequently processed the change of ownership,
legally transferring the Properties to Baobab. The payment of the
initial R35 million ($2.5 million) tranche has now been made to the
seller. The balance of the purchase price, being a further tranche of
R35 million, will accrue interest at the South African prime interest
rate (currently 10.25%) less 3.0% and is payable within three years,
on the earlier of:
- the third anniversary of the transfer of the Properties; or
- the first anniversary of production of coal underlying the
Properties; or
- completion of a potential land claims and expropriation process.
In terms of current legislation,this will result in Baobab
receiving market related compensation and will be followed by
negotiations with the Minister of Land Affairs and the successful
claimants, who are shareholders in Baobab, for long-term access to
the Properties.
David Brown, MC Mining’s Chief Executive Officer commented:
“The acquisition of Lukin and Salaita completes the suite of surface
rights required for our flagship Makhado Project and the initial
tranche of the purchase price was settled using internal cash flows.
The transaction will facilitate the commencement of the final
geotechnical drilling and related studies required for the siting of
the mine’s infrastructure. In parallel, we continue to progress
offtake negotiations for the balance of the Makhado coking and thermal
coal as well as discussions with potential funders.”
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 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 and thermal 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.
Regulatory
This announcement is inside information for the purposes of Article 7 of Regulation
596/2014.
Date: 14/01/2019 09:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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