Kibo Mining Agrees Term Sheet with Sanderson Capital Partners
21 December 2016
Kibo Mining plc (“Kibo” or the “Company”) (AIM: KIBO; AltX: KBO), the Tanzania focused mineral exploration and development Company, is pleased to announce it has entered into a binding term sheet (the “Term Sheet”) with Sanderson Capital Partners Limited (“Sanderson”) for a new USD2,940,000 forward payment facility (the “Facility”).
The Facility provides for Kibo to be advanced part of the USD 3,672,036 development cost recovery, payable to the Company by SEPCO III on achieving financial close of the Mbeya Coal to Power Project (“MCPP”) (the “Receivable”) which was announced by the Company on 13 October 2016. The Facility has the effect of forward selling the Receivable at a 20% discount.
The principal terms of the Facility are as follows:
- Sanderson will provide Kibo with USD 2,940,000 in cash, to be paid in five tranches between the date of this announcement and June 2017;
- The Company will issue new ordinary shares in Kibo (“Kibo Shares”) to Sanderson to the value of USD732,036 (being the difference between the amount of the Receivable and the funds to be provided under the Facility) at the VWAP for Kibo shares over the 30 days prior to the date of signing of the Term Sheet, ie. 20 December 2016;
- Kibo will be under no obligation to draw the full amount available under the Facility, but will forfeit any payments not drawn against on the due date of the relevant tranche;
- Kibo will repay to Sanderson the amounts drawn down on the Facility on receipt of the Receivable from SEPCO III; and
- Sanderson has the right to convert up to £1.5m of amount drawn down on the Facility into Kibo Shares at the 30 day VWAP prior to the repayment date of the total Facility amount.