12th Nov 2015 13:17
LONDON (Alliance News) - Kibo Mining PLC, a mineral exploration and development company focused on project in Tanzania, on Thursday said it has issued 1.7 million shares at six pence each to Sanderson Capital Partners Ltd.
The shares were issued on receipt of GBP500,000 from Sanderson, marking the full drawdown of a loan facility provided by Sanderson to Kibo in November.
Kibo, which is listed on AIM in London, UK and the AltX in Johannesburg, South Africa, was hit by the administration of former broker Hume Capital Securities PLC. Kibo announced a share placing worth GBP950,000 through Hume Capital on March 2, and the broker entered administration later that month.
"Whilst confirming that the GBP526,000 placing proceeds due to the company, which have been retained in the Hume client money account since March 2015, will be released to Kibo in due course, the administrators of Hume Capital have not been able to provide Kibo with a definitive timeline for the distribution," Chief Executive Louis Coetzee said in a statement.
"Accordingly Kibo has elected to draw down the loan facility from Sanderson in order to prevent the delay in the receipt of these funds from holding up work on the Mbeya Coal to Power Project and Kibo's other projects," Coetzee said.
Shares in Kibo were down 2.9% at 4.37 pence on Thursday afternoon in London.
By Samuel Agini; [email protected]; @samuelagini
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