en.Wedoany.com Reported - MC Mining, a coal company dual-listed on the Australian Securities Exchange (ASX) and the Johannesburg Stock Exchange (JSE), has entered into a binding agreement with its controlling shareholder Kinetic Development Group (KDG) and minority shareholder Eagle Canyon International Group for a $9.94 million promissory note financing.

Under the agreement, KDG and Eagle Canyon have agreed to subscribe for one or more unsecured convertible promissory notes issued by the company, with principal amounts of $6.14 million and $3.8 million, respectively. The proceeds from the financing will be primarily used for the continued construction and commissioning of MC Mining's flagship project, the Makhado hard coking coal project in Limpopo Province, South Africa.

Specifically, the funds will be allocated to complete the remaining civil works for the Makhado coal handling and washing plant; continue the development of open-pit mining operations, including ongoing overburden stripping and related mining contractor costs; complete supporting infrastructure, including the 22 kV power supply main line, substation equipment, water supply pipelines, and ancillary works; and cover commissioning and joint trial runs required before the project transitions to stable commercial production.

Additionally, the funds will support the company's working capital needs and the sustainable management of MC Mining's other mining assets in South Africa, including the Uitkomst and Vele coal mines.

MC Mining stated that the promissory note plan will provide timely, committed, and flexible financing to support the continued construction and commissioning of the Makhado project, bridging the funding gap before first commercial production. The plan will further demonstrate the strategic alignment and ongoing financial support of controlling shareholder KDG, a mature and profitable coal producer listed on the Main Board of the Hong Kong Stock Exchange.

The company noted that the plan continues Eagle Canyon's participation as a supportive significant minority shareholder, with non-controlling shareholders providing meaningful endorsement of the promissory note plan while maintaining the company's financing flexibility and sustainability. MC Mining said it will further update shareholders on the progress of the promissory note plan, including the timing of the general meeting and operational milestones for the Makhado project.

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