22nd Sep 2016 09:53
LONDON (Alliance News) - Tanzania-focused mineral exploration company Kibo Mining PLC said Thursday that it has hired Absa Bank Ltd as financial advisor for its Mbeya coal-to-power project.
AIM-listed Kibo said it has signed an engagement letter for Absa, a subsidiary of Barclays Africa Group Ltd, to act as its new financial advisor on the company's project to construct a thermal power station at the Mbeya coal deposit.
Kibo said the agreement contains a minimal cash retainer fee in exchange for granting Absa equity call options of 3.5% of the total share capital of Mbeya Development Co Ltd, the project company. The exercise date for the options will be no earlier than 18 months after completion and commissioning of the project, and the options will include a release mechanism, subject to payment equal to the value of the shares.
Kibo Chief Executive Officer Louis Coetzee said: "We are extremely pleased with having ABSA / Barclays on board as the new financial advisor to the MCPP on the terms outlined above. ABSA / Barclays will replace our existing financial advisor, Standard Bank for the very important financial close phase of the MCPP."
"We are glad to report that the transition to ABSA will be seamless and will not result in any delay or additional budget cost towards completion of the Integrated Bankable Feasibility Study for the project. We are looking forward to benefiting from ABSA/Barclays' impressive record in bringing projects similar to the MCPP to successful financial close."
Shares in Kibo were down 1.7% at 8.85 pence Thursday.
By Adam Clark; [email protected]
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