KIBO Mining said it had removed all outstanding liabilities from the business and was in a stronger position to negotiate funding for its Mbeya coal to power project (MCPP) in Tanzanian following an agreement with Sanderson Capital in which the finance group will subscribe for shares in Kibo in return for $3.7m.
The agreement relates to an earlier financing agreement between Kibo and Hulme Capital which subsequently went into liquidation and was unable to complete the transaction. Sanderson Capital Partners stepped in to negotiate the transaction which Kibo has now settled with the issue of shares.
As a result, Sanderson will be issued with approximately 21.2 million shares in Kibo at a price of 5.25 pence per share representing a 13% premium to Kibo’s closing share price of 4.65p/share on July 6. “This is a strong endorsement of our strategy focused on building an African energy company to help alleviate the continent’s growing energy deficit,” said Kibo CEO, Louis Coetzee in a statement.
“We now have no outstanding liabilities which puts us in a much stronger position in terms of negotiations related to debt and equity funding for the three projects we are currently advancing,” he said. In addition to MCPP, Kibo has control of the Mabesekwa coal deposit in Botswana which it hopes to use in a coal-to-power project, and an understanding to work with the Mozambique electricity authorities on a coal-fired power solution in that country.
