The Makhado Project is a hard coking coal project in the Limpopo province of South Africa. It is located in the Soutpansberg Coalfield, approximately 15km north of the town of Louis Trichardt
MC Mining raises funds through the Rights Issue. (Credit: Анатолий Стафичук from Pixabay)
MC Mining Limited (MC Mining or the Company) is pleased to announce a fully underwritten 1.012 for 1 renounceable rights issue offer of new shares in MC Mining (each, a New Share) at an issue price of A$0.20 per New Share for Eligible Shareholders in Australia and New Zealand and ZAR 2.36 per New Share for Eligible Shareholders in South Africa (in either case, the Issue Price) to raise gross proceeds of A$40 million (equivalent to approximately ZAR 472 million) (Rights Issue).
Please see below and Sections 1.3 and 1.4 of the Offer Booklet for further detail on the Company’s proposed use of the funds raised under the Rights Issue.
The Rights Issue will be made to all holders of the Company’s fully paid ordinary shares (each, a Share) who are, as at 7pm (local time) on Wednesday, 12 October 2022 (Record Date), registered (in accordance with the records of the Company’s share registry) with an address in Australia, New Zealand or South Africa (Eligible Shareholders).
The Issue Price per New Share under the Rights Issue represents an approximately 49.7% discount to the 30-day volume weighted average price (VWAP) of Shares traded on ASX and an approximately 48.0% discount to the 30-day VWAP of Shares traded on JSE, in either case, over the 30 trading days on which trades were recorded prior to (and including) Friday, 16 September 2022.
Since the Rights Issue is renounceable, “Rights4” will be tradeable on ASX and JSE (but not on AIM) and/or otherwise transferable by Eligible Shareholders to Eligible Investors.
This provides Eligible Shareholders with the opportunity to sell some or all of their Rights and for Eligible Investors to acquire Rights and exercise those Rights to subscribe for a corresponding number of New Shares.
Morgans Corporate Limited ACN 010 539 607 (Morgans or the Underwriter) and Adelaide Equity Partners Limited ACN 119 059 559 (together, the Joint Lead Managers) will act as joint lead managers of the Right Issue. The Rights Issue is fully underwritten by Morgans, pursuant to the terms of an underwriting agreement details of which are included in Sections 1.7 and 3.3 (and Schedule 2) of the Offer Booklet.
Senosi Group Investment Holdings Proprietary Limited (an entity that is owned and controlled by Mr Mathews Senosi, a Director of the Company) (SGIH) and Dendocept Proprietary Limited (Dendocept) and its associates (collectively, the Dendocept Group) have each (as applicable) (i) irrevocably committed to take up their Rights in full and (ii) entered into sub-underwriting agreements with the Underwriter for the balance of the total amount the Company is seeking to raise under the Rights Issue. SGIH has a pro rata Entitlement of 38,824,276 New Shares pursuant to the Rights Issue, and has
additionally sub-underwritten up to 51,128,010 of the balance of New Shares not subscribed for or sold under the Rights Issue (for which SGIH will receive a fee from the Underwriter).
Should any Shareholder (together with its Associates) acquire a Relevant Interest in more than 20% of the Shares on completion of the Rights Issue that Shareholder will, pursuant to the requirements of AIM, be required to enter into a market standard relationship agreement with the Company designed to seek to ensure that the Company’s business is run for the benefit of Shareholders as a whole and
independently of any such Shareholder.
Fractional entitlements to New Shares will be rounded up or down (as appropriate) with fractions of 0.5 and above being rounded up and fractions below 0.5 being rounded down in either case to the nearest whole New Share.
Source: Company Press Release