MC Mining Limited Purchase Of Key Makhado Surface Rights Completed (9404M)
January 14 2019 - 2:00AM
UK Regulatory
TIDMMCM
RNS Number : 9404M
MC Mining Limited
14 January 2019
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 Officer MC Mining Limited +27 10 003 8000
Brenda Berlin Chief Financial Officer MC Mining Limited +27 10 003 8000
Tony Bevan Company Secretary Endeavour Corporate Services +61 08 9316 9100
Company advisors:
Financial PR
Jos Simson/ Gareth Tredway (United Kingdom) Tavistock +44 20 7920 3150
Ross Allister/David McKeown Nominated Adviser and Broker Peel Hunt LLP +44 20 7418 8900
Charmane Russell/Olwen Auret Financial PR (South Africa) R&A Strategic Communications +27 11 880 3924
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
MSCDXLFFKFFFBBK
(END) Dow Jones Newswires
January 14, 2019 02:00 ET (07:00 GMT)
Mc Mining (LSE:MCM)
Historical Stock Chart
From Mar 2024 to Apr 2024
Mc Mining (LSE:MCM)
Historical Stock Chart
From Apr 2023 to Apr 2024