MC Mining Limited (ASX:MCM) has entered into a second unsecured bridge loan agreement with its controlling shareholder, Kinetic Development Group Limited (KDG), for US$8.0 million, while disclosing a temporary suspension of mining and production operations at its Makhado Project and the resignation of Non-Executive Director Ms Yi (Christine) He, effective 9 November 2026.

Key Points

  • KDG has agreed to provide a second unsecured bridge loan of US$8.0 million, to be settled through a share subscription of 38,295,836 shares at US$0.2089 per share, subject to shareholder approval.
  • The Board has resolved to temporarily suspend mining and production operations at the Makhado Project while the business and funding plan is reviewed and aligned with C4 commissioning findings.
  • C4 hot commissioning demonstrated a washing rate of approximately 7,600 tonnes per day and hard coking coal quality of approximately 10% ash, while also identifying areas requiring optimisation.
  • Ms Yi (Christine) He has resigned as a Non-Executive Director with effect from 9 November 2026, having previously served as Managing Director and Chief Executive Officer until 29 July 2026.
  • The company's annual general meeting is scheduled for 30 November 2026, with a supplementary notice of meeting to be released reflecting the Second Bridge Loan.

Second Bridge Loan Terms and KDG Funding

Under the loan agreement, KDG will advance US$8.0 million to MC Mining as an unsecured bridge loan, designated the Second Bridge Loan. Interest is set at the Reserve Bank of Australia's outstanding business loan rate for medium business plus 3.00% per annum, compounded monthly. Subject to shareholder approval, the outstanding principal will be applied by way of set-off against the subscription price for the second tranche of 38,295,836 shares at US$0.2089 per share under the share subscription agreement with KDG announced on 13 August 2026. Together with the first bridge loan of US$8.0 million drawn during the quarter ended 30 September 2026, the two facilities represent the US$16.0 million of capital support agreed with KDG.

Makhado Project Suspension and C4 Commissioning Findings

Operations at the Makhado Project were temporarily suspended on 1 October 2026 while the company finalised its funding arrangements. C4 hot commissioning of the Makhado coal handling and preparation plant during the quarter ended 30 September 2026 demonstrated run-of-mine feed, coal washing, and production of hard coking coal and thermal coal, with a washing rate of approximately 7,600 tonnes per day and hard coking coal quality of approximately 10% ash. Commissioning also identified areas requiring optimisation, including front-end feeder infrastructure. The Board has resolved that the suspension period will be used to review the mine plan, remaining capital expenditure programme, funding requirements, and contractor and operating arrangements for restart.

Director Resignation and Workforce Changes

Ms Yi (Christine) He resigned as a Non-Executive Director effective 9 November 2026. Ms He had served as Managing Director and Chief Executive Officer until 29 July 2026, when she transitioned to a Non-Executive Director role, and was a member of the Audit and Risk Committee and Disclosure Committee. The Board stated it will consider its composition and announce any further board changes. Separately, the company has invited qualifying South African employees to apply for voluntary separation packages as part of broader cost-reduction and sustainability measures, with no final decision taken regarding compulsory retrenchments.