- MC Mining (MCM) has concluded an agreement with Columbia Skies Holdings, under which CSH will subscribe for MC Mining shares
- Roughly 7.8 million of the company’s shares will be issued at a ten per cent discount, in order to raise approximately R10 million (approximately A$830,550)
- Pending approval from the South African Reserve Bank, the agreement should be executed during September 2020
- The funds will be used to progress the company’s flagship Makhado hard coking coal project, and for general working capital
- MC Mining closed in the grey for 10 cents per share
MC Mining (MCM) has concluded an agreement with Columbia Skies Holdings, under which CSH will subscribe for MC Mining shares.
CSH, which is owned by businessman Pitso Madibo, will subscribe for 7,831,785 ordinary shares in MC Mining. The shares will be issued at a 10 per cent discount to their 30-day volume weighted average on the Johannesburg Stock Exchange up to September 1, 2020.
As a result of the subscription, CSH and Pitso Madibo will gain a 4.8 per cent interest in MC Mining.
The issue of the ordinary company shares to CSH will also raise approximately R10 million (approximately A$830,550) for MC Mining. These funds will be used to progress the company’s flagship Makhado hard coking coal project, as well as for general working capital.
Pending approval from the South African Reserve Bank, the agreement should be executed during September 2020.
MC Mining’s Acting CEO, Brenda Berlin, commented on the company’s ongoing operations, in the midst of the COVID-19 pandemic.
“The investment by CSH ensures we have the necessary resources to be able to complete the composite funding package, anticipated to be by the end of CY2020, as well as providing working capital for the initial period of construction in H1 CY2020,” she said.
“MC Mining previously secured a R245 million (approximately A$20.3 million) loan from the Industrial Development Corporation of South Africa Limited, a critical component in the Makhado Phase 1 debt/equity funding structure,” she added.
MC Mining closed in the grey for 10 cents per share.