MC Mining's response to Goldway's takeover offer

MC Mining Limited (MCM) has received and responded to Goldway Capital Investment Limited's (Goldway) A$0.16 off-market takeover offer for all shares not currently owned by Goldway's associates. The independent board committee (IBC) of MCM, as stated in the Target's Statement, continues to unanimously recommend that shareholders do not accept the offer, based on the Independent Expert's Report (IER) prepared by BDO Corporate Finance (WA) Pty Ltd (BDO), which concluded that the offer is neither fair nor reasonable to shareholders.

Executive commentary on Goldway's offer

The IBC reaffirms its position against Goldway's offer, emphasizing that the A$0.16 price significantly undervalues MCM. The Independent Expert, BDO, assessed the value of an MCM Share prior to the offer between A$0.214 and A$0.356, with a preferred value of A$0.285 per MCM Share on a controlling interest basis. The IBC also addresses Goldway's false assertions regarding Vele Aluwani Colliery not being on care and maintenance, and the Independent Expert's market value approach to valuation.

Summary of MC Mining's response and outlook

MC Mining's IBC stands firm in its recommendation against accepting Goldway's offer, citing the undervaluation of MCM and its assets. The IBC reiterates that shareholders who sell their shares at the offered price will forego the opportunity to participate in the exploration and production potential of MCM's development assets. The company's board and management team believe in the strong position of MCM to complete the fundraising efforts required to advance Makhado into production in the near term. The IBC looks forward to the continuing support of shareholders and encourages them not to accept the offer.