MC Mining to Raise ZAR15 Million for Makhado Hard Coking Coal Project

MC Mining to Raise ZAR15 Million for Makhado Hard Coking Coal Project

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South African coal miner MC Mining has been given the go-ahead for ZAR 15 million capital raise, as it continues to raise capital to develop its flagship Makhado project. The group, which has a market capitalisation of ZAR 188 million, will issue about 13.3-million shares, at 105.56 per share. The number of shares in issue will rise by about 9.4% to 154 million once the capital raise is completed, with the permission coming from the Reserve Bank.

A commitment for the issue of the New Equity was a condition in the ZAR 40 million restructured loan agreement with the Industrial Development Corporation of South Africa Limited to advance the Makhado hard coking coal project and for general working capital. In terms of the Agreement, the IDC will receive an estimated 1.1 million warrants, equating to 0.8% of MC Mining’s issued shares, and its direct participation in the Makhado Project will increase from 5% to 6.7%.

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