12th Apr 2016 15:19
LONDON (Alliance News) - Kibo Mining said it issued shares to Sanderson Capital Partners after electing to draw down the second tranche of funds available under its loan facility.
Kibo has issued 1.4 million shares to Sanderson Capital Partners to cover the amount it has drawn down from the GBP1.5 million loan facility secured in early March.
Kibo said it has issued 1.4 million shares in the company to Sanderson to cover the first tranche and the second tranche of GBP300,000 drawn down from the facility Tuesday.
Of the shares being issued, 1.2 million shares are to cover the second tranche Tuesday and the other 173,954 shares to cover the first drawdown from the facility.
Kibo said the shares covering the second tranche were issued at the mid-market price of 3.75 pence per share, but said that was outside the 4.0 to 5.0 pence per share range, which is what the drawdown fee is fixed at.
Kibo said that gave rise to a shortfall in the shares issued to Sanderson in respect of the first drawdown fee of GBP51,000, which was calculated at a price of 4.3 pence per share.
The GBP1.5 million loan facility can be drawn down in a maximum of five GBP300,000 tranches, and was taken out to allow the company to focus its attention on delivering its Mbeya coal-to-power project in Tanzania.
Kibo shares were trading up 2.1% to 3.70 pence per share on Tuesday afternoon.
By Joshua Warner; [email protected]; @JoshAlliance
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