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LONDON (Alliance News) - Kibo Mining PLC said Thursday it has now received GBP522,800 it was owed in proceeds from its placing with Hume Capital Securities PLC in February 2015.
The Tanzania focused mineral exploration and development company said that to bolster its cash position further it also approached Sanderson Capital Partners Ltd to re-negotiate repayment terms on a GBP500,000 unsecured interest-free bridge loan facility, and said it had been able to agree more favourable terms.
Under the new terms, a minimum of 60% of the loan amount - or around GBP300,000 - will be repaid in shares and not in cash, at a price equal to Kibo's 30-day volume-weighted average share price on the date on which the repayment is due. No more than 40% of the loan - or around GBP200,000 - along with a GBP50,000 fee, will be repaid in cash, deferred for 28 days from the repayment date.
"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 definitive feasibility study," said Chief Executive Officer Louis Coetzee in a statement.
"It will also allow us to keep all the company's strategic resources diligently focused and deployed in this regard," Coetzee added.
Shares in Kibo Mining were up 4.2% at 4.55 pence Thursday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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