4th Nov 2015 08:45
LONDON (Alliance News) - Kibo Mining PLC on Wednesday said it has secured a short-term GBP500,000 loan facility from Sanderson Capital Partners Ltd to tide the company over whilst it waits for money owed to the company by its former broker, which is well overdue.
Kibo can utilise the facility at its own discretion within three months, and the facility is unsecured and is interest free. However, a GBP150,000 arrangement fee will be payable if it uses the facility, which would be paid GBP50,000 in cash and GBP100,000 in shares at a fixed price of 6.0 pence per Kibo share.
Kibo shares were down 3.5% to 4.82p on Wednesday morning.
"Kibo is pleased to have secured the GBP500,000 loan facility which will provide the company with short-term cash flow stability and security in a tough market. This will support Kibo while we await a definitive date for receiving the GBP526,000 still held by the administrator of Kibo's former broker Hume Capital," it said in a statement.
Back in August, Kibo got a favourable court ruling that the GBP526,000 of Kibo's funds tied up in Hume Capital had to be released, as Kibo tried to get back the money for shares issued to third-party investors back in February that was tied up in Hume's client money account after the adviser entered administration.
The court had ruled the money had to be released by October 2, but Kibo is still awaiting the funds.
That GBP526,000 was raised from issuing over 10.5 million shares. Kibo raised GBP950,000 in its share placing, and received about GBP219,500 before Hume Capital's administration. That left about GBP730,500 outstanding locked up in the Hume Capital accounts but the company agreed back in June to forfeit GBP204,000 which was raised from 4.1 million shares issued to Hume's discretionary clients.
By Joshua Warner; [email protected]; @JoshAlliance
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