(Updates with the stock movement in the headline and last paragraph.)
MC Mining (ASX:MCM) entered binding agreements for a $9.9 million promissory note program with controlling shareholder Kinetic Development Group and minority shareholder Eagle Canyon International Group, according to a Thursday filing with the Australian bourse.
Kinetic and Eagle will respectively subscribe for $6.1 million and $3.8 million worth of unsecured convertible promissory notes to be issued by MC Mining, per the filing.
The proceeds will be used for the construction and commissioning of MC Mining's flagship Makhado hard coking coal project in South Africa, as well as for general working capital needs.
The investors may convert the notes into MC Mining ordinary shares at a fixed conversion price of $0.2089 per share, the company said.
MC Mining shares gained over 5% in recent Friday trade.