2nd Mar 2016 12:54
LONDON (Alliance News) - Kibo Mining PLC said Wednesday it has secured a GBP1.5 million loan facility with Sanderson Capital Partners Ltd.
The loan can be drawn down in five GBP300,000 tranches no fewer than 40 days apart, and is due for repayment no later than end-August 2016.
Kibo is also obliged to pay a 5.0% corporate advisory fee to the company's broker, Beaufort Securities Ltd.
The company said that this funding will allow it to focus its attention on delivering its Mbeya coal-to-power project in Tanzania.
"The MCPP is progressing at an expeditious pace. We are now only a few months away from expected completion of the Definitive Feasibility Studies for both the mining and power elements of the MCPP and at an advanced stage with the MCPP commercial arrangements and agreements," said Chief Executive Officer Louis Coetzee in a statement.
"Sustaining and maintaining this momentum is crucial to successfully expediting the completion of the final MCPP development phase, with funding certainty and stability over the next six months a key factor in this," Coetzee added.
Shares in Kibo were down 2.4% at 4.15 pence Wednesday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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