Picture: SOWETAN
Picture: SOWETAN

Junior coal miner MC Mining has been given the go-ahead for a R15m capital raise, as it continues to raise capital to develop its flagship Makhado project.

The group, which has a market capitalisation of R188m, will issue about 13.3-million shares, at 105.56c per share. The number of shares in issue will rise by about 9.4% to 154-million once the capital raise is completed, with the permission coming from the Reserve Bank.

The issue was part of an agreement in a R40m restructured loan agreement with the Industrial Development Corporation (IDC), and the proceeds will be used for general working capital and to advance the Makhdo project.

The IDC will receive 1.1-million shares, bringing its direct participation in the project to 6.7% from 5% previously, MC Mining said.

MC Mining relies on the Uitkomst colliery in KwaZulu-Natal for cash generation, but its priority is Makhado in Limpopo, which will produce coking coal and thermal coal once production begins.

gernetzkyk@businesslive.co.za

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