MC Mining Limited Chapudi Project - Mining Right Granted (0297K)
11 December 2018 - 6:05PM
UK Regulatory
TIDMMCM
RNS Number : 0297K
MC Mining Limited
11 December 2018
ANNOUNCEMENT 11 December 2018
CHAPUDI PROJECT - MINING RIGHT GRANTED
MC Mining Limited ("MC Mining" or the "Company") is pleased to
announce that the South African Department of Mineral Resources
("DMR") has granted a mining right for its 74% owned Chapudi coking
and thermal coal project ("Chapudi Project") in the Limpopo
province. The Chapudi Project, together with the Mopane and
Generaal Projects, comprise the Company's longer-term Greater
Soutpansberg Project ("GSP") situated in the Soutpansberg
Coalfield.
The GSP is located within close proximity to the Musina-Makhado
Special Economic Zone ("SEZ"), an area designated by government to
focus on amongst others, energy and metallurgical processing.
The Chapudi mining right is the first of the three GSP mining
right applications to be granted; these applications were submitted
to the DMR during 2013. The Chapudi Project alone contains over 6.3
billion gross tonnes in situ of inferred coal resources(1) and
supports MC Mining's strategy to be a substantial producer of hard
coking coal, used in the steel manufacturing process and typically
attracting a significantly higher sales price compared to thermal
coal.
David Brown, MC Mining's Chief Executive Officer commented:
"The granting of the mining right for the Chapudi Project is a
key step in unlocking value from MC Mining's significant coking and
thermal coal assets and positions the GSP to be a potential
long-term coal supplier to the planned Musina-Makhado SEZ. The
Mopane and Generaal Project mining right applications are at an
advanced stage and we anticipate that these will be granted in the
near future. Following this, the Company will commence with the
various studies required for the outstanding water and
environmental regulatory approvals.
We continue to advance our flagship Makhado hard coking and
thermal coal project and the November 2018 agreement to acquire the
Lukin and Salaita properties facilitates the completion of
geotechnical and related infrastructure studies for the proposed
colliery. Further, recent Makhado Project milestones include the
conclusion of a hard coking coal off-take agreement while
negotiations for the remaining hard coking coal as well as the
thermal coal and funding initiatives are progressing and updates
will be provided when appropriate."
AUTHORISED BY:
David Brown
Chief Executive Officer
For more information contact:
David Brown Chief Executive Officer MC Mining Limited +27 10 003 8000
Brenda Berlin Chief Financial Officer MC Mining Limited +27 10 003 8000
Tony Bevan Company Secretary Endeavour Corporate Services +61 08 9316 9100
Company advisors:
Financial PR
Jos Simson/ Gareth Tredway (United Kingdom) Tavistock +44 20 7920 3150
Ross Allister/David McKeown Nominated Adviser and Broker Peel Hunt LLP +44 20 7418 8900
Charmane Russell/Olwen Auret Financial PR (South Africa) R&A Strategic Communications +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 and thermal
coal), Makhado Project (coking and thermal coal). Vele Colliery
(coking and thermal coal), and the Greater Soutpansberg Projects
(MbeuYashu).
Forward-Looking Statements
This Announcement, including information included or
incorporated by reference in this Announcement, may contain
"forward-looking statements" concerning MC Mining that are subject
to risks and uncertainties. Generally, the words "will", "may",
"should", "continue", "believes", "expects", "intends",
"anticipates" or similar expressions identify forward-looking
statements. These forward-looking statements involve risks and
uncertainties that could cause actual results to differ materially
from those expressed in the forward-looking statements. Many of
these risks and uncertainties relate to factors that are beyond MC
Mining's ability to control or estimate precisely, such as future
market conditions, changes in regulatory environment and the
behaviour of other market participants. MC Mining cannot give any
assurance that such forward-looking statements will prove to have
been correct. The reader is cautioned not to place undue reliance
on these forward looking statements. MC Mining assumes no
obligation and do not undertake any obligation to update or revise
publicly any of the forward-looking statements set out herein,
whether as a result of new information, future events or otherwise,
except to the extent legally required.
Statements of intention
Statements of intention are statements of current intentions
only, which may change as new information becomes available or
circumstances change.
Regulatory
This announcement is inside information for the purposes of
Article 7 of Regulation 596/2014.
MC Mining has ensured that the mineral resources quoted are
subject to good governance arrangements and internal control. The
Company has engaged external independent consultants to update the
mineral resource in accordance with the JORC Code 2012 and SAMREC
2016. The units of measure in this report are metric, with Tonnes
(t) = 1,000kg. Technical information that requires subsequent
calculations to derive subtotals, totals and weighted averages may
involve a degree of rounding and consequently introduce an error.
Where such errors occur MC Mining does not consider them to be
material.
Coal Resources completed for the Greater Soutpansberg Project -
Mineral Resources:
MC Mining completed a review and update to its Mineral Resource
for the GSP during 2017. The review and verification was undertaken
by Venmyn Deloitte (Pty) Ltd, commissioned to prepare an
Independent Competent Persons report in accordance with the AIM
Rules. The Coal Resources for the GSP assets were estimated and
signed-off by MC Mining's Competent Person, Mr J Sparrow
(Pr.Sci.Nat.) (MC Mining's Group Geologist.
(1) The GSP independent Competent Persons Report can be found on
the Company's website:
http://www.mcmining.co.za/our-business/projects/gsp-mbeu-yashu
.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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