KEY POINTS
- MC Mining has secured an unsecured US$8 million bridge loan from controlling shareholder KDG to meet immediate working capital needs.
- KDG has also agreed to invest US$16 million in new MC Mining shares, subject to shareholder approval.
- The new funding is separate from MC Mining’s existing US$9.936 million Convertible Loan Note Programme
MC Mining Limited has secured additional financial support of up to US$16 million from its controlling shareholder, Kinetic Development Group Limited (KDG), as the coal producer works to strengthen its finances and meet its immediate working capital needs.
The funding agreement was signed on August 13, 2026, and includes an unsecured US$8 million bridge loan that will provide them with immediate access to cash once the conditions required for the drawdown have been satisfied.
The bridge loan is intended to provide short-term liquidity while its proceeds with the necessary shareholder approval process for a larger share subscription by KDG.
In addition to the bridge loan, KDG has agreed to subscribe for US$16 million worth of new shares in MC Mining.
The shares will be issued in two equal tranches at US$0.2089 per share, although the price remains subject to any adjustments required under the Australian Securities Exchange (ASX) Listing Rules.
KDG may make the investment directly or through a wholly owned subsidiary that it nominates.
The proposed share subscription remains subject to shareholder approval, making the US$8 million bridge loan particularly important because it gives MC Mining access to funding before the larger equity investment is completed.
Funding Comes as KDG Strengthens Control
The latest financial support follows KDG’s emergence as MC Mining’s controlling shareholder earlier this year.
On April 22, 2026, KDG acquired a 51% interest in MC Mining’s ordinary shares on a fully diluted basis, giving it control of the company.
MC Mining said the latest transaction represents new and additional funding and is separate from its existing Convertible Loan Note Programme.
MC Mining has also been raising funds through its existing Convertible Loan Note Programme, which has so far provided the company with US$9.936 million.
KDG has committed US$6.136 million under that programme, while Eagle Canyon International Group Holding (Hong Kong) Limited has committed a further US$3.8 million.
The company stressed that the latest KDG transaction does not represent a variation, refinancing or extension of the Convertible Loan Note Programme.
Instead, the new arrangement is designed to provide MC Mining with additional capital to support its working capital requirements and ongoing operations.
The fresh funding comes as MC Mining continues to advance its operations and moves closer to developing its Makhado coal project.
The additional capital is expected to strengthen the company’s financial position as it manages its immediate cash requirements and works towards securing shareholder approval for the proposed equity investment.
The US$8 million bridge facility will provide near-term liquidity, while the proposed US$16 million share subscription could give MC Mining a further significant injection of capital once approved and completed.
