Kibo Mining Plc Share Issue (9168U)

TIDMKIBO

RNS Number : 9168U

Kibo Mining Plc

12 April 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") 
 

12 April 2016

Share Issue

Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX: KBO), the Tanzania focused mineral exploration and development Company has today elected to make the second drawdown of the loan facility (the "Facility") provided to the Company by Sanderson Capital Partners Limited ("Sanderson"), the details of which were announced on the Company's RNS of 03 March 2016.

In accordance with the terms of the Facility the Company has today allotted 1,360,000 Ordinary Shares (the "Sanderson Shares") of EUR0.015 par value each in the capital of the Company to Sanderson. The Sanderson Shares will be issued as a drawdown fee upon receipt of GBP300,000 from Sanderson, representing the second drawdown on the Facility of up to GBP1,500,000 provided by Sanderson to the Company. The Sanderson Shares comprise 1,186,046 shares to be issued in relation to the second drawdown and a further issue of 173,954 shares in relation to the first drawdown (announced on 3 March 2016). The mid-price for Kibo shares on 3 March 2016 of 3.75 pence per share was outside the 4 pence to 5 pence per share range in which the standard drawdown fee is fixed at 1,186,046 Ordinary Shares in Kibo. This gave rise to a shortfall in the shares issued to Sanderson in respect of the first drawdown fee of GBP51,000, which was calculated on an effective price of 4.3 pence per share.

Application will be made for the Shares to be admitted to trading on AIM and the JSE AltX markets. Trading in the Shares is expected to commence on AIM and the JSE on or around 15th April 2016 ("Admission"). On completion of Admission the Company will have 351,424,760 shares in issue.

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 
--------------------  --------------  ---------------  ------------------- 
                                       Bell Pottinger   Investor and Media 
   Daniel Thöle     +44 (0) 203                         Relations 
     / Anna Legge         772 2500 
--------------------  --------------  ---------------  ------------------- 
 

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 Mbeya, which has a significant JORC compliant defined resource, and is developing a 250-350MW mouth-of-mine thermal power station, the Mbeya Coal to Power Project ("MCPP"), with an established management team that includes Standard Bank as Financial Advisor. Kibo is undertaking a Coal Mining Definitive Feasibility Study and a Power Definitive Feasibility Study for the Mbeya project with an integrated Bankable Feasibility Report for the MCPP 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 and a 168,000oz NI 43-101 compliant gold Mineral Resource at the Lubando Project 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

12 April 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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April 12, 2016 11:00 ET (15:00 GMT)