(Sharecast News) - Kibo Energy announced on Thursday that it had received 31,646,424 new MED shares at a deemed price of 1.482p each as part of a partial settlement of £0.47m from its subsidiary, Mast Energy Developments (MED).
The AIM-traded firm said the transaction partially addressed the total outstanding amount that MED owed to Kibo's wholly-owned subsidiary, Kibo Mining Cyprus.
Post-settlement, MED still owed £0.76m to Kibo Cyprus.
With the acquisition of the new MED shares, Kibo's stake in MED was boosted to 147,811,746 shares, translating to a 56.02% interest.
Kibo said it was also actively working with advisors and funders to ensure that MED was sufficiently capitalised for its immediate financial needs.
Additionally, it said it was considering providing further short-term funds to facilitate MED's financial stability and ongoing projects amid efforts to finalise the previously announced MED joint venture.
Despite unexpected delays due to exceptional events previously disclosed, both the Kibo and MED boards remained optimistic that the joint venture could proceed as initially planned.
"We are pleased to announce the partial settlement of the MED Loan, which has been agreed on favourable terms to both Kibo and MED whilst minimising shareholder dilution in MED," said chief executive officer Louis Coetzee.
"The favourable settlement terms with the extended pricing period not only highlight Kibo's ongoing support of MED but also illustrate its firm belief in MED's future success and anticipated conclusion of its previously announced joint venture.
"We are committed to continuing to support MED and Kibo's other investments."
Reporting by Josh White for Sharecast.com.
Kibo Energy (KIBO)