JOHANNESBURG – MC Mining said on Monday its subsidiary Baobab Mining & Exploration had completed the acquisition of the Lukin and Salaita properties, giving it key surface rights required for its Makhado hard coking and thermal coal project.
The purchase, first announced on November 15, was conditional upon the seller notifying and addressing any concerns raised by the Limpopo province regional land claims commissioner.
"The commissioner did not object to the transaction during the legislated 30-day notification period and the Deeds Office has subsequently processed the change of ownership, legally transferring the properties to Baobab," MC Mining said.
"The payment of the initial R35 million ($2.5 million) tranche has now been made to the seller. The balance of the purchase price, being a further tranche of R35 million, will accrue interest at the South African prime interest rate ... less 3.0 percent and is payable within three years."
MC Mining Chief Executive David Brown said the initial tranche of the purchase price was settled using internal cash flows.
"The transaction will facilitate the commencement of the final geotechnical drilling and related studies required for the siting of the mine’s infrastructure," he said.
"In parallel, we continue to progress offtake negotiations for the balance of the Makhado coking and thermal coal as well as discussions with potential funders.”