MC Mining Limited Agreement Signed with Haohua Energy International (9574C)

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RNS Number : 9574C

MC Mining Limited

21 June 2019

   ANNOUNCEMENT                                         21 June 2019 

COOPERATION AGREEMENT SIGNED WITH HAOHUA ENERGY INTERNATIONAL (HONG KONG)

MC Mining Limited ("MC Mining") is pleased to announce the signing of a co-operation agreement with Haohua Energy International (Hong Kong) ("HEI"), a wholly owned subsidiary of Shanghai-listed Beijing Haohua Energy Resource Co. Limited, the largest exporter of anthracite coal from China.

The original cooperation agreement between the parties was signed in 2013. However, the introduction of new shareholders during the last six years resulted in HEI not maintaining the required 19.9% shareholding in MC Mining and the agreement subsequently lapsed. The revised 2019 cooperation agreement aligns HEI's threshold with other substantial shareholders eligible to have a board seat and the company will need to maintain an interest of at least 5.4% to have the right to nominate a potential director to the MC Mining board. Mr Shangren Ding is HEI's current representative and will remain on the board as their nominee.

MC Mining believes it is important to maintain the relationship with HEI in order to benefit from their substantial knowledge, and the cooperation agreement facilitates a long-term mutually beneficial strategic partnership. The agreement includes details on the commercial, technical, financial and operational issues pursuant to which MC Mining will be able to draw on HEI's technical expertise. Furthermore, HEI will assist and use its best endeavours to arrange further funding in the development of the MC Mining's substantial coking coal assets.

Authorised by

David Brown

Chief Executive Officer

For more information contact:

 
                  Chief Executive 
 David Brown       Officer             MC Mining Limited      [phone] 
                  Chief Financial 
 Brenda Berlin     Officer             MC Mining Limited      [phone] 
                                       Endeavour Corporate    [phone] 
 Tony Bevan       Company Secretary     Services               9100 
 

Company advisors:

 
                            Financial PR (United                            [phone] 
 Jos Simson/Emily Fenton     Kingdom)               Tavistock                3150 
                            Nominated Adviser                               [phone] 
 Ross Allister               and Broker             Peel Hunt LLP            8900 
 Charmane Russell/Olwen     Financial PR (South     Russell & Associates    +27 11 880 
  Auret                      Africa)                                         3924 or 
                                                                             +27 82 372 
                                                                             5816 
 

Investec Bank Limited is the nominated JSE Sponsor

About MC Mining Limited:

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 (coking and thermal coal). Vele Colliery (coking and thermal coal), and the Greater Soutpansberg Projects (coking and thermal coal).

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.

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 [e-mail] or visit www.rns.com.

END

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June 21, 2019 02:00 ET (06:00 GMT)