MC Mining announced that the Department of Minerals Resources has approved the requisite Section 102 application and the first quarterly payment of R11.3 million has been received.
MC Mining announced in October 2017 that it had sold its shares and claims in the Mooiplaats thermal colliery for an aggregate purchase price of R179.9 million.
The conditions precendent for the transaction were satisfied in November 2017 resulting in MC Mining receiving the initial sale proceeds of R67 million.
The timing of the ten equal quarterly payments to settle the remaining balance of R112.9 million was scheduled to commence during August 2018 but was dependent on the DMR approving the requisite Section 102 application to, among other things, incorporate certain prospecting rights into the Colliery’s mining right, failing which the payments would be delayed.
” The Section 102 approval was the final requirement to complete the Mooiplaats sales process that commenced during 2013 and is another significant step in the clean-up of the company’s balance sheet,” comments MC Mining CEO, David Brown.
“The Mooiplaats disposal will result in estimated annual cost savings of R18 million and the quarterly payments will be used to develop MC Mining’s flagship hard coking coal project,” he continues.