Kibo Mining Plc Company Update (4561K)
April 10 2018 - 9:00AM
UK Regulatory
TIDMKIBO
RNS Number : 4561K
Kibo Mining Plc
10 April 2018
Kibo Mining Plc (Incorporated in Ireland) (Registration Number:
451931)
(External registration number: 2011/007371/10) Share code on the
JSE Limited: KBO
Share code on the AIM: KIBO ISIN: IE00B97C0C31
('Kibo' or 'the Company')
Dated: 10 April 2018
Kibo Mining Plc ('Kibo' or the 'Company')
Details of Placing, Changes to the Roles of Directors and
Appointment of Joint Broker
Kibo Mining plc ('Kibo' or the 'Company') (AIM: KIBO; AltX:
KBO), the multi-asset Africa-focused energy and resource company,
is pleased to announce that it has received commitments to raise
GBP1,500,000 before expenses via a placing of 28,571,428 ordinary
shares in Kibo of par value. EUR0.015 each ('New Ordinary Shares')
at a placing price of 5.25p per share (the 'Placing'). The Placing
has been arranged by Kibo's UK Broker, SVS Securities Limited
("SVS") and Novum Securities Limited ("Novum"). Novum will be
appointed joint corporate broker with SVS today, following
completion of the Placing.
The funds from the Placing will go towards general working
capital and expediting ongoing advanced feasibility studies at the
Mabesekwa Independent Coal to Power Project, Botswana ('Mabesekwa')
as well as strengthening the Company's financial position ahead of
the commencement of further work at the Mbeya Coal to Power Project
('MCCP') following the signing of the Power Purchase Agreement
('PPA') which is expected shortly.
Application has been made for the New Ordinary Shares to be
admitted to trading on AIM and the JSE AltX markets. Trading in the
New Ordinary Shares is expected to commence on AIM and the JSE on
or around Tuesday 24(th) April 2018 ('Admission'). Following
Admission, the Company will have 595,182,882 shares in issue and
this figure may be used by shareholders as the denominator for the
calculations to determine if they are required to notify their
interest in, or a change to their interest in, the Company under
the FCA's Disclosure Guidance and Transparency Rules.
On Admission, the shareholdings in the Company of Shumba Energy
Ltd (and related parties) and Sanderson Capital Partners Ltd (and
related parties) will decrease on unchanged holdings and the impact
of dilution to 25.83% (153,710,030 ordinary shares) and 3.95%
(23,499,444 ordinary shares) respectively. The Company expects to
pay an aggregate of GBP75, 000.00 expenses associated with the
Placing.
The Company is also pleased to announce some structural changes
to its Board and Management, but notes that there are no
resignations from, or additional appointments to, the Board. Mr.
Tinus Maree, currently non-executive director, will be joining the
executive committee ("EXCO") of Kibo. Mr. Maree has a robust and
complete understanding of the Company and Kibo will continue to
benefit from Mr. Maree's extensive experience as a corporate lawyer
as he will continue to provide internal legal advice and review in
his new position. Mr. Noel O'Keefe and Mr. Andreas Lianos are
transitioning to a non-executive role with the Company. Mr. O'Keefe
shall continue to provide the Company with invaluable technical
advice and oversight and Mr. Lianos will be instrumental in the
Company's financial oversight as non-executive Financial Director.
Additionally, Mr. Pieter Krügel is joining the Kibo EXCO as Chief
Financial Officer. Mr. Krügel is a qualified Chartered Accountant
and holds a BCom Accounting degree as well as a BCompt Honours
Accounting Science degree. Mr Krügel's work experience has equipped
him with very broad working and management exposure at all
corporate levels, ranging from retirement / investment fund
management, employee benefit management to corporate financial
management.
Louis Coetzee, CEO of Kibo Mining, said, "This remains an
exceptionally busy and exciting time for Kibo. The Placing enables
the Company to expedite the feasibility studies of the Mabesekwa
project in Botswana as well as strengthening the Company's
financial position, providing it with sufficient cash resources to
conclude the funding and financial close process on the MCPP, as
the latter heads strongly towards finalizing the PPA."
**ENDS**
For further information please visit www.kibomining.com or
contact:
Louis Coetzee louisc@kibomining.com Kibo Mining Chief Executive
Plc Officer
Andreas Lianos +27 (0) 83 4408365 River Group Corporate Adviser
and Designated
Adviser on
JSE
Ben Tadd +44 (0) 20 3700 SVS Securities Joint Broker
/ 0093 Limited
Tom Curran
Jon Belliss +44 (0) 20 7399 Novum Securities Joint Broker
9400 Ltd
Andrew Thomson +61 8 9480 2500 RFC Ambrian NOMAD on AIM
Limited
Isabel de +44 (0) 20 7236 St Brides Partners Investor and
Salis / Priit 1177 Ltd Media
Piip Relations Adviser
This announcement contains inside information as stipulated
under the Market Abuse Regulations (EU) no. 596/2014 ("MAR").
Notes to editors
Kibo is a multi-asset resource development and energy company
with a long-term goal of becoming a leading power producer in
Sub-Saharan Africa. The Company aims to tackle the acute power
deficit which is severely hindering economic development in the
region.
Kibo's flagship asset is the Mbeya Coal to Power Project
('MCPP') in Tanzania, which comprises the Mbeya Coal Mine, a 1.5Mt
p/a mining operation, and the Mbeya Power Plant, a 300MW mine-mouth
thermal power station. The Mbeya Coal Mine has a defined 120.8 Mt
NI 43 101 thermal coal resource. A Definitive Feasibility Study has
been conducted on the project which underpinned its value and
confirmed an initial rate of return of 69.2%. The 300MW
mouth-of-mine thermal power station has long term scalability with
the potential to become a 1000MW plant. The completed full Power
Feasibility Study highlighted a power output target of 1,800 GWh/a
based on annual average coal consumption of 1.5Mt. An Integrated
Bankable Feasibility Study report for the entire project indicated
total potential revenues of US$ 7.5-8.5 billion over an initial
25-year mine life, post tax equity IRR between 21-22%, debt
pay-back period of 11-12 years and a construction period of 36
months.
To assist in the execution of this critical power project of the
MCPP, Kibo has assembled an international team of advisors and
partners including Engineering Procurement and Construction ('EPC')
contractors and financial teams that are assisting in the
advancement and development of the MCPP. These include
ABSA/Barclays as Financial Advisor, China based EPC contractor
SEPCO III, General Electric, Tractebel Engineering (Power), Minxcon
Consulting (Mining) and legal advisors Norton Rose Fulbright.
Kibo also has an 85% interest in the Mabesekwa Coal Independent
Power Project ('MCIPP'), a nearly identical power project in
Botswana. The project consists of 300Mt subset of the current
in-situ 777Mt Coal Resource and has water and land use permits and
environmental certification in place. A Pre-Feasibility Study on
the coal mine has been completed, as has a Scoping Study, which
highlight the power plant having a maximum capacity of 600MW
(4x150MW) based on a coal delivery rate of 3.2Mtpa and a Life of
Mine of over 30 years.
Johannesburg
10 April 2018
Corporate and Designated Adviser
River Group
This information is provided by RNS
The company news service from the London Stock Exchange
END
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