MC Mining Lands $16M Lifeline from Controlling Shareholder Kinetic
MC Mining has secured up to $16 million in capital support from its controlling shareholder, Kinetic Development Group (KDG). The package combines an unsecured bridge loan worth $8 million and a share subscription of $16 million in post-IPO equity. This deal is significant because it gives MC Mining immediate working capital ahead of a shareholder meeting to approve the share subscription.
The bridge loan, which carries interest at the Reserve Bank of Australia's medium-business loan rate plus 3%, can be repaid within three months of drawdown. Drawdown depends on shareholders holding at least 25% of issued capital and delivering a voting intention statement. KDG will subscribe for new ordinary shares in two equal tranches at $0.2089 per share.
The deal marks continued reliance by MC Mining on its dominant backer to shore up the balance sheet. This raises questions about the company's ability to stand on its own and attract external funding without relying heavily on KDG.