MC Mining Limited Completion of Mooiplaats Colliery Sale Transaction (1771Z)
August 30 2018 - 1:00AM
UK Regulatory
TIDMMCM
RNS Number : 1771Z
MC Mining Limited
30 August 2018
ANNOUNCEMENT 30 August 2018
COMPLETION OF THE MOOIPLAATS COLLIERY SALE TRANSACTION
MC Mining Limited ("MC Mining" or the "Company") announced in
October 2017 that it had sold its shares and claims in the
Mooiplaats thermal colliery ("Mooiplaats" or the "Colliery") for an
aggregate purchase price of R179.9 million. The conditions
precedent for the transaction were satisfied in November 2017
resulting in the Company receiving the initial sale proceeds of
R67.0 million. The timing of the ten equal quarterly payments to
settle the remaining balance of R112.9 million was scheduled to
commence during August 2018 but was dependent on the Department of
Mineral Resources ("DMR") approving the requisite Section 102
application to, amongst other things, incorporate certain
prospecting rights into the Colliery's mining right, failing which
the payments would be delayed.
MC Mining is pleased to announce that the DMR has timeously
approved the requisite Section 102 application and the first
quarterly payment of R11.3 million has been received.
David Brown, CEO commented:
"The Section 102 approval was the final requirement to complete
the Mooiplaats sales process that commenced during 2013 and is
another significant step in the clean-up of the Company's balance
sheet. The Mooiplaats disposal will result in estimated annual cost
savings of R18 million and the quarterly payments will be used to
develop MC Mining's flagship Makhado hard coking coal project."
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/James
Bavister 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 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.
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
DISFMGZRDLNGRZM
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