MC Mining raises £0.45m for Makhado coal project
By Josh White
Date: Friday 04 Sep 2020
(Sharecast News) - MC Mining announced the conclusion of a subscription agreement with Columbia Skies Holdings on Friday, raising ZAR 10m (£0.45m) for both general working capital, and the Makhado hard coking coal project.
The AIM-traded firm said the agreement would result in CSH subscribing for 7,831,785 MC Mining shares, and was conditional upon South African Reserve Bank approval, which was expected during September.
It said the issue of the shares would result in CSH having a 4.8% interest in the company.
The funds would be used for general working capital requirements, as well as progressing the firm's flagship Makhado hard coking coal project.
"MC Mining previously secured a ZAR 245m loan from the Industrial Development Corporation of South Africa - a critical component in the Makhado phase 1 debt and equity funding structure," said acting chief executive officer Brenda Berlin.
"We have made significant progress subsequent to the lifting of the Covid-19 lockdown and are in discussions with various potential funders for the balance of the phase 1 funding.
"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 the 2020 calendar year, as well as providing working capital for the initial period of construction in the first half of 2021."
At 0811 BST, shares in MC Mining were up 4.35% in London, at 6p.
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