14th Jul 2014 08:54
LONDON (Alliance News) - Kibo Mining PLC Monday said it has raised GBP600,000 before expenses through an oversubscribed share placing of 34.3 million shares at a placing price of 1.75 pence per share with certain clients of its UK Broker, Hume Capital Securities PLC.
Kibo Mining shares were down 13% to 1.75 pence, putting it amongst the top three AIM All-Share fallers on Monday.
The Tanzania-focused mineral exploration and development company said it has received commitments for the placing shares from the investors and noted that all of Kibo's directors are also participating in the placing for a cumulative amount of GBP100,000 on the same terms as other investors.
The company said that it does not currently have sufficient issued authorised capital to accommodate the oversubscribed placing, so GBP127,500 worth of shares will be deferred until after a vote at its annual general meeting on July 30.
"We are pleased with the results from the latest placing, given the extremely difficult funding environment in which exploration companies find themselves in, over the past years," Chief Executive Louis Coetzee said in a statement.
Kibo Mining did not elaborate on what it would use the new funds for but in March the company raised GBP750,000 in a share placing that it planned to use to help advance its Imweru gold project in Tanzania.
"We will now be able to continue advancing our Imweru Gold Project with a view to early commissioning of preliminary economic studies and assessment of the project," Coetzee said at the time.
By Tom McIvor; [email protected]; @TomMcIvor1
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