1st Feb 2022 11:01
(Alliance News) - MC Mining Ltd on Tuesday said it intends to raise USD5.6 million, around ZAR86.0 million, through a convertible advance and subscription agreement with South African mining group Senosi Group Investment Pty Ltd.
Under the agreement, Senosi will subscribe for 38.4 million shares at a price of ZAR1.20 each under the first tranche, which will raise ZAR46.0 million and give Senosi a 20% interest in MC Mining.
There is also a conditional agreement for Senosi to subscribe for a second tranche of 33 million shares at the same price per share, raises ZAR40 million, and increasing Senosi's stake to 32%.
The issue of shares is conditional on approval from the Australian Securities Exchange and Johannesburg Stock Exchange, as well as the South African Reserve Bank.
In addition, the second tranche will require shareholder approval, since it will result in Senosi owning more than 20% of MC Mining should it go through.
"We are very pleased Senosi has agreed to invest in our company and to also join our board of directors. His successful track record of developing and operating coal mines in South Africa will be invaluable as we move closer to finalising the funding requirements to develop our flagship Makhado project," said Chair Bernard Pryor.
Shares in MC Mining were up 7.4% at 5.10 pence in London, while its Johannesburg shares remained flat at ZAR1.12.
By Dayo Laniyan; [email protected]
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