1st Sep 2016 08:47
LONDON (Alliance News) - Kibo Mining PLC on Thursday said it has re-negotiated terms for the payback of its loan facility from Sanderson Capital Partners Ltd.
Under the previous terms, Kibo was required to pay back the GBP1.5 million loan by the end of August. However, it will now be settled under new terms.
Sanderson will convert the full loan amount into a 2.5% stake in Kibo subsidiary Mbeya Development Co Ltd, which holds Kibo's Mbeya coal-to-power project (MCPP) in Tanzania. Kibo will issue Sanderson with GBP150,000 worth of Kibo shares as a loan conversion fee.
Sanderson will grant Kibo access to a new GBP600,000 standby loan facility until the end of February 2017, on similar terms as the existing facility, to be used at Kibo's discretion and on which no fees or costs will be payable until Kibo elects to make use of it.
"We are very pleased with the renegotiated settlement terms for the Sanderson loan facility. This will relieve pressure on our working capital position and significantly enhance our ability to expedite the remaining MCPP development work. It also avoids further dilution in Kibo's equity as a consequence of costs incurred in the development of the MCPP," said Chief Executive Officer Louis Coetzee in a statement.
Shares in Kibo were up 7.5% at 5.51 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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