JOHANNESBURG (miningweekly.com) – Dual-listed Kibo Mining has received the £522 800 final proceeds of its February 2015 placing with Hume Capital Securities.
This concluded the payment of £526 000, representing the consideration for 10.5-million shares issued to third-party investors.
To further bolster the Tanzania-focused miner’s cash position, amid difficult market conditions, Kibo had also approached Sanderson Capital Partners to renegotiate the repayment terms of a £500 000 unsecured interest-free bridge loan facility.
The companies agreed that a minimum of 60% of the loan amount, or £300 000, would be repaid in Kibo ordinary shares instead of cash, while the repayment of no more than 40% of the loan amount, £200 000, as well as the £50 000 fee component, be deferred for another 28 calendar days from the repayment date.
Any additional costs and fees that may be incurred with the extension, implementation and execution of the renegotiated loan agreement would be settled in ordinary shares.
Kibo CEO Louis Coetzee said the company was delighted to have received the Hume money, as well as with the outcome of negotiations over the renegotiated loan facility with Sanderson.
“The Hume money and amended facility will significantly enhance Kibo's cash position and will allow us to continue to fund ongoing operations,” he added.
Kibo was developing the Mbeya coal-to-power project – a 109-million-ton coal mine and a 250 MW to 300 MW mouth-of-mine thermal power plant.