MC Mining Limited (JSE:MCZ) News - R60 Million Standby Loan Facility Agreed

MC Mining Limited
Previously Coal of Africa Limited
(Incorporated and registered in Australia)
Registration number ABN 008 905 388
ISIN AU000000MCM9
JSE share code: MCZ
ASX/AIM code: MCM
                                                                   6 June 2022

R60 MILLION STANDBY LOAN FACILITY AGREED

MC Mining Limited (MC Mining or the Company) is pleased to announce that it has entered into a R60
million (US$3.9 million) Standby Loan Facility (the Facility) with Dendocept (Proprietary) Limited
(Dendocept), an approximately 1.5% shareholder in the Company. Proceeds from the Facility will be
utilised to progress early works at the Makhado hard coking coal project (Makhado Project or
Makhado), enhancement of specific areas of the Makhado Bankable Feasibility Study and
geotechnical and confirmatory drilling programmes as well as fund group working capital.

The salient features of the Facility are:

-     Dendocept will advance up to R60 million to MC Mining's wholly owned subsidiary, GVM Metals
      Administration (South Africa) (Proprietary) Limited (GVM Admin), the group administration
      company in South Africa;
-     The Facility is available for a period of 12 months from first drawdown and must be repaid on or
      before the end of this period (Final Maturity Date);
-     Interest will be paid monthly calculated using the prevailing South African Prime interest rate
      (currently 8.25%) plus a margin of 3%, similar to that levied on the current bank financing in the
      group;
-     the Facility is unsecured and is guaranteed by MC Mining; and
-     the outstanding balance on the Final Maturity Date is payable in cash or convertible to MC Mining
      equity at a price per share calculated as the prevailing 30-day Volume Weighted Average Price
      minus 15% on the date of conversion. Payment in MC Mining equity is at the sole discretion of
      GVM Admin and the Company and is subject to all required shareholder and regulatory approvals,
      including South African exchange control approval.

The Facility does not incur any utilisation charges and can be cancelled prior to the Final Maturity Date
without penalty while the terms do not preclude potential equity financing arrangements for the
Makhado Project, including the issue of new equity for cash in the Company or its subsidiaries.
Additional debt financing will require the settlement of the Facility or the prior written approval of
Dendocept.

Godfrey Gomwe, CEO of MC Mining, commented:

“The Facility reflects continued shareholder support, yet another positive step for the Company, and
will contribute to group working capital while the Makhado fund raising process is completed. MC
Mining continues to progress the remainder of the Makhado funding requirements and anticipates
that this will be concluded in Q3 CY2022. The development of Makhado will position MC Mining as
South Africa’s pre-eminent producer of high-grade metallurgical coal with long-term hard coking coal
markets supported by growing global steel demand, driven by economic development and
urbanisation.”

Authorised by

Godfrey Gomwe

Chief Executive Officer

This announcement is inside information for the purposes of Article 7 of the Market Abuse Regulation (EU)
596/2014, as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (as
amended).

This announcement has been approved by the Company’s Board.

For more information contact:

Tony Bevan                        Company Secretary              Endeavour Corporate          +61 8 9316 9100
                                                                 Services

Company advisors:

James Harris / James Dance        Nominated Adviser             Strand Hanson Limited         +44 20 7409 3494



Rory Scott                        Broker (AIM)                  Tennyson Securities Limited   +44 20 7186 9031

James Duncan                      Financial PR (South Africa)   R&A Strategic                 +27 11 880 3924
                                                                Communications

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. MC
Mining’s key projects include the Uitkomst Colliery (metallurgical and thermal coal), Makhado Project (hard coking coal).
Vele Colliery (semi-soft coking and thermal coal), and the Greater Soutpansberg Projects (coking and thermal coal).



Statements of intention

Statements of intention are statements of current intentions only, which may change as new information becomes available
or circumstances change.




                                                                                                                       

Date: 06-06-2022 01:30:00
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