MC Mining vows to resume capital raise efforts if Goldway bid fails

(Alliance News) - MC Mining Ltd said on Monday it will resume efforts to raise capital for its projects, if Goldway Capital Investment Ltd does not achieve the "minimum acceptance condition" for its offer as the deadline approaches.

Goldway, a consortium including MC Mining's largest shareholders Senosi Group Investment Holdings and Dendocept, first launched its takeover bid for MC Mining in February.

Goldway's offer of 16 Australian cents per share, or approximately 8.28 pence, closes on April 5.

In Sydney, MC Mining shares closed flat at AUD0.14 on Monday. The shares were down 1.8% at 7.22p on Monday in London, and shed 15% to ZAR1.70 each in Johannesburg.

The Canberra, Australia-based and South Africa-focused coal mine developer on Monday reiterated its recommendation that shareholders should reject Goldway's offer.

In the event of the bid's failure, MC Mining said it will then re-start the capital and fund raising initiatives that have been stymied since early August 2023 due to the conditions imposed by Goldway. MC Mining is developing its flagship Makhado project.

The coal producer also said the consortium had offered a loan to the group. It said it will evaluate this loan offer among other funding alternatives it is considering.

On Monday, MC Mining said the Goldway consortium had combined relevant interest of 82.19%, not 75%, of its issued shares. Since the offer opened on February 16, Goldway has received conditional acceptances from only 8.3% of shareholders, taking Goldway's relevant interests to 71.69% as at Friday last week.

If Goldway fails to reach a combined relevant interest of 82.19% by April 5, then the "minimum acceptance condition" will not be satisfied, MC Mining said. It added that the offer period will not be extended for a further 10 business days, so Goldway's offer will fail and lapse on April 5.

"Any acceptances received by Goldway will be rescinded (no offer consideration will be paid) and no legal title in the shares will pass to Goldway," the company said.

MC Mining has maintained that the Goldway offer was "significantly" below its valuation range assessed by an independent expert of between 21 Australian cents and 36 cents per share, with a preferred value of 29 cents.

By Artwell Dlamini, Alliance News reporter

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