MC Mining Limited Heads of Agreements for Makhado Funding and EPC (0216A)
September 06 2018 - 7:02AM
UK Regulatory
TIDMMCM
RNS Number : 0216A
MC Mining Limited
06 September 2018
ANNOUNCEMENT 6 September 2018
HEADS OF AGREEMENTS FOR THE MAKHADO PROJECT FUNDING AND
ASSOCIATED EPC AND MINING CONTRACTS
MC Mining Limited ("MC Mining" or the "Company") has signed
Heads of Agreements ("HOAs") with leading international Chinese
construction enterprise, China Railway International Group Co.,
Ltd. ("CRIG"). CRIG is the international focused division of China
Railway Group, a leading global construction company listed in
Shanghai and Hong Kong.
Under the terms of the HOAs, the Company and CRIG have agreed to
negotiate a package that comprises the engineering, procurement and
construction ("EPC") for the Makhado hard coking and thermal coal
project ("Makhado Project") coal handling and processing plant,
financing for 85% of the EPC costs and contract mining operations,
conditional upon the finalisation of terms and conditions by June
2019. These include completion of the Makhado front end engineering
and design study and agreement on the EPC contract price by both
parties, as well as appropriate funding provided on acceptable
terms.
The development of the Makhado Project is expected to facilitate
economic growth in the Limpopo province and the Company will keep
the market appraised on further progress with regards to the
ongoing discussions with CRIG. Off-take discussions for hard coking
and export thermal coal production from Makhado are ongoing with
various parties.
David Brown, CEO commented:
"This is an extremely positive move as it represents
international recognition for the world class nature of the Makhado
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
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