Default on Subscription Agreement
MC Mining Limited
Previously Coal of Africa Limited
(Incorporated and registered in Australia)
Registration number ABN 008 905 388
JSE share code: MCZ
ASX/AIM code: MCM
ANNOUNCEMENT 22 October 2020
DEFAULT ON SUBSCRIPTION AGREEMENT
MC Mining Limited (“MC Mining” or the “Company”) on 4 September 2020 announced the conclusion
of a Subscription Agreement (the "Agreement”) with Columbia Skies Holdings Proprietary Limited
(“CSH”), which is wholly-owned by Mr. Pitso Madibo, a South African industrialist. The Agreement
provided for CSH to subscribe for 7,831,785 ordinary MC Mining shares (the “CSH Shares”),
conditional only upon South African Reserve Bank (“SARB”) approval. SARB approval was duly
received and Mr. Madibo was notified in accordance with the terms of the Agreement.
MC Mining regrets to report that CSH has not paid the subscription price of approximately R10 million
($0.6 million) for the CSH Shares as provided for in the Agreement. Both CSH and Mr. Madibo were
issued with a material default notice but did not remedy the default within the prescribed period.
The Company continues its discussions with various potential funders in respect of the balance of the
financing required for the development of Phase 1 of its flagship Makhado hard coking coal project
and general working capital requirements. A further announcement will be made in due course.
Brenda Berlin, MC Mining’s Acting CEO, commented: “MC Mining is very disappointed that Mr.
Madibo and his company have defaulted on the Agreement. We have taken legal advice in this regard
and have reserved all our rights to enforce due performance by CSH and Mr. Madibo personally.”
Acting Chief Executive Officer
This announcement has been approved by the Company’s Disclosure Committee.
This announcement contains inside information for the purposes of Article 7 of Regulation 596/2014.
* All figures are in South African rand or United States dollars unless otherwise stated.
For more information contact:
Brenda Berlin Acting Chief Executive MC Mining Limited +27 10 003 8000
Tony Bevan Company Secretary Endeavour Corporate +61 08 9316 9100
James Harris / James Dance Nominated Adviser Strand Hanson Limited +44 20 7409 3494
Rory Scott Broker (AIM) Mirabaud Securities Limited +44 20 3167 7220
James Duncan Financial PR (South R&A Strategic +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. MC Mining’s key projects include the Uitkomst Colliery (metallurgical coal), Makhado Project (hard coking
coal), Vele Colliery (semi-soft coking coal) and the Greater Soutpansberg Projects (coking and thermal coal).
Date: 22-10-2020 12:30:00
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