MC Mining Limited has secured a A$1 million or US$700 000 (R1.3 billion) loan facility from Eagle Canyon International, which is linked to the company’s current chief executive and managing director Christine He, in a further show of support by the company’s directors and shareholders.
He controls Eagle Canton International, with the new unsecured loan facility having a final maturity date of 30 June next year.
Interest for the facility will have to be paid monthly at the prevailing Australian Reserve Bank Rate for medium business that currently stands at 6.25% plus a margin of 3%.
“The facility will be utilised for general working capital and is a further positive step in stabilising the company’s liquidity position,” said Mathews Senosi, MC Mining interim chairman.
Senosi added that the facility “reflects the continued shareholder commitment to support MC Mining” at a time the group’s “operational and overhead costs are being assessed to ensure that MC Mining has the appropriate resources” to develop its shovel-ready and flagship Makhado steelmaking hard coking coal project.
“Additional debt financing will require the settlement of the facility or the prior written approval of Eagle Canyon International,” said the company.
In the year to the end of March, MC Mining’s run-of-mine (ROM) coal production from the Uitkomst steelmaking and thermal coal mine grew by 14%, compared to the same period in 2023, to 115 909 tons.
Quarterly sales for the period from the Uitkomst asset amounted to 75 590 tons of high-grade coal
There were limited activities at the Makhado steelmaking hard coking coal project during the same period, while the downscaling of operations at the Vele Aluwani Colliery was completed during January.
Last month, MC Mining announced it had secured a R20 million loan facility from Dendocept Proprietary Limited, which holds about 6.8% in the company.
The loan will be used to fund the mining group’s working capital.
BUSINESS REPORT