TIDMKIBO
RNS Number : 8000Q
Kibo Mining Plc
02 March 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")
02 March 2016
Kibo Mining Agrees Unsecured, Interest Free Loan Facility of
GBP1, 500,000 Ensuring Adequate Funding Security In The Medium
Term
Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX:
KBO), the Tanzania focused mineral exploration and development
Company is pleased to announce it has today entered into a loan
facility (the "Facility") with Sanderson Capital Partners Limited
("Sanderson") for an amount up to GBP1,500,000 to be utilised by
Kibo, at its sole discretion and election, for contingency funding,
during the term of the Facility.
The Facility comprises the following:
-- An unsecured, interest free, fixed term loan due for repayment no later than 31 August 2016;
-- The loan can be drawn down in five GBP300,000 tranches no
less than 40 days apart, with tranches three, four and five subject
to successfully achieving certain specified project
deliverables;
-- A fee of up 7 million Ordinary Shares in Kibo, capped by a
maximum value of GBP350,000 associated with the arrangement and
implementation of the Facility, will become payable if the Facility
is utilised (the "Arrangement Fee");
-- The Arrangement Fee will be payable on the day the Facility is activated by Kibo;
-- In addition to the Arrangement Fee, a drawdown fee of
GBP51,000 is payable to Sanderson in respect of each of the five
GBP300,000 drawdown tranches;
-- Each drawdown fee will be payable in 1,186,046 Ordinary
Shares in Kibo, subject to certain share price limits, on or before
any particular drawdown date;
-- At the completion of the term of the loan, Kibo will have the
option to settle the first GBP750,000 of the monies borrowed in
either cash or Ordinary Shares in Kibo;
-- Should Kibo be unable to settle the second GBP750,000 of
monies borrowed in cash it will have the option to settle this
portion in Ordinary Shares in Kibo; and
-- In the event where the loan or any part thereof is settled in
shares, the price at which such Ordinary Shares will be issued will
be the 30 day VWAP for Kibo Ordinary Shares that traded during the
30 days preceding the settlement date.
Additional to the fees payable to Sanderson in the event of
utilising the Facility, Kibo is also obliged to pay a 5% corporate
advisory fee to the Company's broker, Beaufort Securities Limited.
The amount off GBP75,000 will be payable in Ordinary Shares in Kibo
at the same time as the Arrangement Fee becomes due and will be
issued at a price equal to the prevailing market price for Kibo
Ordinary Shares.
Louis Coetzee, CEO of Kibo Mining commented today: "The MCPP is
progressing at an expeditious pace. We are now only a few months
away from expected completion of the Definitive Feasibility Studies
for both the mining and power elements of the MCPP and at an
advanced stage with the MCPP commercial arrangements and
agreements. Notably, Kibo has also retained 100% ownership of the
MCPP and has cultivated growing support and interest from the
Tanzanian Government and other strategic stakeholders.
Sustaining and maintaining this momentum is crucial to
successfully expediting the completion of the final MCPP
development phase, with funding certainty and stability over the
next six months a key factor in this. To this end, Kibo has secured
a funding instrument for the Company that:
-- Provides adequate funding security in the medium term while
retaining the flexibility to freely investigate additional or
substitute funding alternatives;
-- Is considered to be competitive vis a vis other funding
options currently on offer and accessible to Kibo, given the
prevailing market conditions;
-- Provides the transparency and flexibility for the Company to
effectively manage its cash position upon repayment of the Loan
facility; and
-- Does not incorporate hidden, cumulative or progressive cost elements.
With this funding in place, we can focus our attention on an
exciting six months ahead to prove and deliver the MCPP as a
project with solid, robust bankable credentials."
Contacts
+27 (0) 83 Kibo Mining Chief Executive
Louis Coetzee 2606126 plc Officer
------------------ ------------ --------------- -------------------
Andreas Lianos +27 (0) 83 River Group Corporate Adviser
4408365 and Designated
Adviser on JSE
------------------ ------------ --------------- -------------------
Jon Belliss +44 (0) 207 Beaufort Broker
382 8300 Securities
Limited
------------------ ------------ --------------- -------------------
Oliver Morse +61 8 9480 RFC Ambrian Nominated Adviser
2500 Limited on AIM
------------------ ------------ --------------- -------------------
Daniel Thöle +44 (0) 203 Bell Pottinger Investor and Media
/ Anna Legge 772 2500 Relations
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Kibo Mining - Notes to editors
Kibo Mining is listed on the AIM market in London and the AltX
in Johannesburg. The Company is focused on exploration and
development of mineral projects in Tanzania, and controls one of
Tanzania's largest mineral right portfolios. Tanzania provides a
secure and stable operating environment for the mineral resource
industry and Kibo Mining therein.
Kibo Mining holds a thermal coal deposit at Rukwa, which has a
significant JORC compliant defined resource (See Table 1 below),
and is developing a 250-350MW mouth-of-mine thermal power station,
the Mbeya Coal to Power Project ("MCPP"), previously called Rukwa
Coal to Power Project ("RCPP"), with an established management team
that includes Standard Bank as Financial Advisor. Kibo is
undertaking a Coal Mining Definitive Feasibility Study and a Power
Pre-Feasibility Study for the Mbeya project with an integrated
Coal-Power interim study report to be released in the near term. On
20(th) April 2015, Kibo signed a Joint Development Agreement for
the completion of the Definitive Feasibility Studies and
development of the MCPP with China based EPC contractor SEPCO
III.
The Company also has extensive gold focused interests including
Lake Victoria Goldfields and Morogoro projects. At Lake Victoria,
the Company has projects with a 550,000oz JORC compliant gold
Mineral Resource at Imweru Project (See Table 2 below) and a
168,000oz NI 43-101 compliant gold Mineral Resource at the Lubando
Project (See Table 3 below) in which the Company holds a 90%
attributable interest. The Company is currently undertaking a
Definitive Feasibility Study on its Imweru Project.
Kibo also holds the Haneti Project on which the latest technical
report confirms prospectivity for nickel, PGMs, gold and strategic
metals including lithium.
Kibo Mining further holds the Pinewood (coal & uranium)
project where the company has entered into a 50/50 Exploration
Joint Venture with Metal Tiger plc.
Finally, the Company also holds the Morogoro (gold) project
where the company has also entered into a 50/50 Exploration Joint
Venture with Metal Tiger plc.
The Company's projects are located in the established and gold
prolific Lake Victoria Goldfields, the emerging goldfields of
eastern Tanzania and the Mtwara Corridor in southern Tanzania where
the Government has prioritised infrastructural development
attracting significant recent investment in coal and uranium. The
Company has a positive working relationship with the Tanzanian
government at local, regional and national levels and works hard to
maintain positive relationships with all communities where company
interests are held. The Company recognises the potential to enhance
the quality of life and opportunity for Tanzanian citizens through
careful development of its projects.
Updates on the Company's activities are regularly posted on its
website www.kibomining.com
Johannesburg
02 March 2016
Corporate and Designated Adviser
River Group
This information is provided by RNS
The company news service from the London Stock Exchange
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