TIDMKIBO
RNS Number : 4632S
Kibo Mining Plc
21 December 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")
21 December 2016
The headline for Kibo Mining Plc announcement released on 21
December at 07:16 under RNS No 4470S should read Term Sheet with
Sanderson Capital Partners agreed.
The announcement text is unchanged and is reproduced in full
below.
Kibo Mining Agrees Term Sheet with Sanderson Capital Partners on
sale of Deferred SEPCO III Payment
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 entered into a binding term
sheet (the "Term Sheet") with Sanderson Capital Partners Limited
("Sanderson") for a new USD2,940,000 forward payment facility (the
"Facility"). The Facility provides for Kibo to be advanced part of
the USD 3,672,036 development cost recovery, payable to the Company
by SEPCO III on achieving financial close of the Mbeya Coal to
Power Project ("MCPP") (the "Receivable") which was announced by
the Company on 13 October 2016. The Facility has the effect of
forward selling the Receivable at a 20% discount.
The principal terms of the Facility are as follows:
-- Sanderson will provide Kibo with USD 2,940,000 in cash, to be
paid in five tranches between the date of this announcement and
June 2017;
-- The Company will issue new ordinary shares in Kibo ("Kibo
Shares") to Sanderson to the value of USD732,036 (being the
difference between the amount of the Receivable and the funds to be
provided under the Facility) at the VWAP for Kibo shares over the
30 days prior to the date of signing of the Term Sheet, i.e. 20
December 2016;
-- Kibo will be under no obligation to draw the full amount
available under the Facility, but will forfeit any payments not
drawn against on the due date of the relevant tranche;
-- Kibo will repay to Sanderson the amounts drawn down on the
Facility on receipt of the Receivable from SEPCO III; and
-- Sanderson has the right to convert up to GBP1.5m of amount
drawn down on the Facility into Kibo Shares at the 30 day VWAP
prior to the repayment date of the total Facility amount.
In addition, Kibo will also pay a corporate advisory fee
("Advisory Fee") to the Company's broker, Beaufort Securities
Limited, of GBP71,442. The Advisory Fee is payable on signing of
the Term Sheet in Kibo Shares at 6.97p for a total of 1,024,993
shares.
Louis Coetzee, CEO of Kibo Mining commented today: "We are
pleased with the facility that was agreed with Sanderson which
allows us to create short to medium term funding certainty in a
market that remains challenging for capital raising. It also
provides Kibo with a creative way of leveraging the deferred SEPCO
III payment and provides a funding solution with minimal dilution
to shareholders. The funds which have been made available will
satisfy the Company's cash requirements for a significant time,
allowing management to focus all their time and energy on bringing
the MCPP to a successful financial close as early as possible in
2017, as well as concluding the Opera transaction and complete the
planned feasibility work on the Imweru gold project as
scheduled."
Contacts
Louis Coetzee +27 (0) 83 2606126 Kibo Mining Chief Executive
plc Officer
--------------------- -------------------- ------------------- -------------------------
Corporate Adviser
Andreas Lianos +27 (0) 83 4408365 River Group and Designated
Adviser on
JSE
--------------------- -------------------- ------------------- -------------------------
Beaufort
Securities
Limited
Jon Belliss +44 (0) 207 Broker
382
8300
--------------------- -------------------- ------------------- -------------------------
RFC Ambrian
Oliver Morse +61 8 9480 2500 Limited Nominated Adviser
on AIM
--------------------- -------------------- ------------------- -------------------------
Liz Morley / +44 (0) 203 Bell Pottinger Investor and Media
Anna Legge 772 2500 Relations
--------------------- -------------------- ------------------- -------------------------
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 NI 43-101 compliant defined resource, and is developing
a 250-350 MW 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
ABSA / Barclays 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 Bankable Feasibility
Study report for the MCPP to be released in the near term. On 25
August 2016, Kibo signed an Agreement with China based EPC
contractor SEPCO III granting it the right to become the sole
bidder for the EPC contract to build the power plant component of
the MCPP in exchange for SEPCO III refunding 50% of the development
costs incurred by Kibo to date on the project. Kibo has already
received the first tranche of this funding in the amount of US$1.8
million on the 5th September 2016
The Company also has extensive gold focused interests including
Lake Victoria Goldfields and Morogoro projects. At Lake Victoria,
the Company has 100% owned projects with a 550,000 oz. JORC
compliant gold Mineral Resource at the Imweru Project and a 168,000
oz. NI 43-101 compliant gold Mineral Resource at the Lubando
Project. 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 prioritized 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 recognizes 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
21 December 2016
Corporate and Designated Adviser River Group
This information is provided by RNS
The company news service from the London Stock Exchange
END
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