Goldway will acquire MC Mining, which owns two South Africa coal mines, the Uitkomst colliery (above) and the idle Vele colliery. (Photo: MC Mining)

Goldway Capital Investment Ltd. has made an unconditional takeover offer of $0.10 per share for all shares in MC Mining Ltd. not currently owned by associates of Goldway.

MC Mining is a coal exploration, development and mining company operating in South Africa. MC Mining’s key projects include the Uitkomst colliery (metallurgical and thermal coal), Makhado project (hard coking coal), Vele Colliery (semi-soft coking and thermal coal), and the Greater Soutpansberg pro-
jects (coking and thermal coal).

Uitkomst is situated 20 km northwest of Utrecht in the KwaZulu Natal province. With a 28-year life of mine, the underground (room-and-pillar) mine has an average raw production of 50,000 metric tons per month (mt/m) and average saleable coal production amounting to 34,000 mt/m.

The quality of the coal produced makes it highly sought after in the local market. Uitkomst is currently analyzing the opportunity to mine the Klipspruit property (North mine) which will extend the operation’s life.

The Vele colliery in the Tuli coalfield, 48 km west of Musina in the, Limpopo province, started production of thermal coal in January 2012, but it was placed on care and maintenance until outstanding regulatory approvals are received and coal prices improve.