Kibo – Issue of Equity 1 October 2010
Kibo Mining (AIM: KIBO), involved in the exploration and development of gold and nickel deposits in Tanzania, is pleased to announce that on 1 October 2010 it agreed to place 12,500,000 new ordinary shares of Euro0.01 each in the Company (“Placing Shares”) at a placing price of 2p per ordinary share (the “Placing”) to raise GBP250,000 before expenses. The net proceeds from the Placing will be used to finance continued exploration in Tanzania and for general working capital purposes.
The Placing Shares were placed by the Company’s broker, Alexander David Securities Limited, with both new and existing investors. The Placing is conditional on admission of the Placing Shares to trading on AIM.
The Placing Shares will represent approximately 4.69 per cent. of the enlarged issued share capital of the Company. The Placing Shares will be fully paid and will rank pari passu in all respects with the existing ordinary shares of Euro0 .01 each in the Company. Application will be made for the Placing Shares to be admitted to trading on AIM (“Admission”). It is expected that Admission will become effective and that dealings in the Placing Shares will commence at 8.00 a.m. on 20 October 2010. The total number of ordinary shares in issue following completion of the Placing, and the total number of voting rights, will be 266,425,874.
The above figure of 266,425,874 ordinary shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, Kibo under the FSA’s Disclosure and Transparency Rules.
Noel O’Keefe, MD of Kibo commented:
“We are delighted with this placing as it allows us to progress the exploration and development of our projects. We believe there is significant potential, to increase the Company’s current mineral resource and discover new mineralisation on our earlier stage projects where our field teams are presently on-site”
|Noel O’Keeffe||+353 91 384562||Kibo Mining plc||Managing Director|
|John Simpson||020 7776 6550||Daniel Stewart & Company Plc||Nominated Adviser|
|Fiona Kinghorn / Nick Bealer||020 7448 9820||Alexander David Securities Limited||Joint Broker|
|Anthony Kluk||020 7628 1128||Loeb Aron & Company Limited||Joint Broker|
Notes to Editors:
Kibo Mining is a public company registered in Ireland (company number 451931). Its registered office is Kibo Mining plc, Suite 3, One Earlsfort Centre, Lower Hatch Street, Dublin 2, Ireland. Kibo was established in early 2008 to explore and develop mineral deposits in Tanzania, East Africa and was admitted to AIM on 27 April 2010.
The Board of Kibo is composed of highly experienced professionals spanning mineral exploration, mine development, mining finance and financial control of public companies. It is supported by well trained and highly motivated Tanzanian staff who operate from Kibo’s exploration office in Tanzania’s second largest city, Mwanza, located in Tanzania’s main gold producing region, The Lake Victoria Goldfields, in the north of the Country.
The main assets of the Company are interests in three principal projects in Tanzania – Itetemia and Luhala (Gold) and Haneti (Nickel, platinoid elements and gold). It also has a grass-roots gold project, Morogoro, which is at an early stage of exploration. Itetemia has a JORC-compliant gold resource of 422,250 oz. grading 3.1 grams per tonne. A preliminary optimisation study by independent consultants CSA Global Pty Limited has indicated potential to develop and open-pit mine at Golden Horseshoe Reef. Infill-drilling is planned in 2010 with a view to increasing the overall resource and enhancing the potential of developing an open-pit gold mine. Recent drilling at Luhala has confirmed the potential to increase the current JORC-compliant gold resource of 111,900 oz. and further drilling is planned.
Haneti is an exciting early stage exploration play prospective for nickel, platinoid and gold mineralisation. Field work has identified a number of areas of interest and a drill programme is planned for the second half of 2010 to test a multi-element soil geochemical anomaly at one site. Morogoro is located in an area of recent artisanal gold mining activity where there has been no previous systematic exploration. Exploration surveys will commence during 2010.
The Company’s objective is to enhance shareholder wealth through acquisition, exploration and development of mineral assets in Tanzania. This objective will be pursued primarily through active exploration, particularly drilling on its current projects and by using the Company’s experience in Tanzania to acquire further quality mineral projects on competitive terms that can be quickly evaluated and taken to the next stage of development. The Company will undertake continua l risk assessment of its projects and take whatever actions it believes are necessary to ensure that these risks are mitigated.