Kibo Mining Plc Hume Placing Update (2273N)
January 28 2016 - 2:00AM
UK Regulatory
TIDMKIBO
RNS Number : 2273N
Kibo Mining Plc
28 January 2016
Kibo Mining Plc (Incorporated in Ireland) (Registration Number:
451931)
(External registration number: 2011/007371/10) Share code on the
JSE Limited: KBO
Share code on the AIM: KIBO ISIN: IE00B97C0C31
("Kibo" or "the Company")
28 January 2016
Kibo Receives Proceeds from Hume Placing and Secures New
Favorable Settlement Terms in Re-Negotiated Sanderson Loan
Agreement
Kibo Mining Plc ("Kibo" or the "Company") (AIM:KIBO; JSE AltX:
KBO), the Tanzania focused mineral exploration and development
company, is pleased to announce that the Company has now received
the amount of GBP522, 800 from the delayed receipt of final
proceeds from its February 2015 placing with Hume Capital
Securities plc ("Hume Capital").
On 25 January 2016, the Joint Special Administrators paid
GBP522,800 of the total GBP526,000 (representing the consideration
for 10,520,000 shares which were to be issued to third party
investors) and that had previously been paid into Hume Capital's
client money account during the February 2015 placing, to Kibo
("Hume Proceeds"). The amount of GBP3,200 was deducted from the
total and represents costs of the administration.
To bolster the Company's cash position further, amidst very
difficult market conditions, Sanderson Capital Partners Ltd
("Sanderson") was approached in an effort to re-negotiate the
repayment terms of the unsecured interest free bridge loan facility
which it advanced to the Company. (Please see RNS of 04 November
2015). In this regard the Company was able to agree the following
more favorable repayment terms:
1. A minimum of 60% of the loan amount (i.e. GBP300,000) will be
repaid in Ordinary Shares of the Company and not in cash, at a
price equal to the 30 day VWAP of Kibo's share price on the date at
which repayment is due, being the earlier of three months from the
date of the original loan agreement or the date on which Kibo
receives the Hume Proceeds ("Repayment Date");
2. Repayment of no more than 40% of the loan amount (i.e.
GBP200, 000), as well as the GBP50, 000 fee component, due in cash
at the Repayment Date, will be deferred for another 28 calendar
days from the Repayment Date; and
3. Any additional costs / fees that may be incurred with the
extension, implementation and execution of the re-negotiated loan
agreement will be settled in Ordinary Shares of the Company, with
the price of such shares to be determined in the same manner as
under point 1 above. It is anticipated that the issuance of any
Ordinary Shares for such additional costs / fees would occur
contemporaneously with those being issued under point 1 above.
Louis Coetzee, CEO of Kibo Mining, said: "We are delighted that
we have now received the Hume money and equally so with the outcome
on the renegotiated Sunderland facility. The Hume money and amended
Sunderland facility will significantly enhance Kibo's cash position
and will allow the Company to continue to fund on-going operations
and in particular stay on schedule with the integrated Mbeya Coal
to Power Project ("MCPP") definitive feasibility study. It will
also allow us to keep all the Company's strategic resources
diligently focused and deployed in this regard.
Through careful forward planning, prudent financial management
and creative use of resources, the Company was able to avoid a
situation where the delayed receipt of the Hume Proceeds had any
significant impact on ongoing work on any of the Company's work
programs. The current position will allow us to continue doing the
same, only more effectively and efficiently."
Contacts
Louis Coetzee +27 (0) 83 2606126 Kibo Mining Chief Executive Officer
plc
-------------------- --------------------- -------------------- -------------------------------
Corporate Adviser and
Andreas Lianos +27 (0) 83 4408365 River Group Designated Adviser on
JSE
-------------------- --------------------- -------------------- -------------------------------
Beaufort Securities
Jon Belliss +44 (0) 207 382 Limited Broker
8300
-------------------- --------------------- -------------------- -------------------------------
RFC Ambrian
Oliver Morse +61 8 9480 2500 Limited Nominated Adviser on
AIM
-------------------- --------------------- -------------------- -------------------------------
Daniel Thöle +44 (0) 203 772 Bell Pottinger Investor and Media Relations
Anna Legge 2500
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Johannesburg
28 January 2016
Corporate and Designated Adviser River Group
This information is provided by RNS
The company news service from the London Stock Exchange
END
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