1 September 2016

Kibo Mining plc (“Kibo” or the “Company”) (AIM: KIBO; AltX: KBO), the Tanzania focused mineral exploration and development Company is pleased to announce that it has re-negotiated terms for the payback of the loan facility (the “Facility”) of GBP1,500,000 provided to the Company by Sanderson Capital Partners Limited (“Sanderson”), the details of which were announced in the Company’s RNS of 3 March 2016. Under the existing terms of the Facility, Kibo was required to pay back the loan in either cash or ordinary shares in Kibo, by 31 August 2016.

The Facility will now be settled as follows:

  • Sanderson will convert the full loan amount of GBP1,500,000 (the “Conversion”) into a 2.5% equity interest in Mbeya Development Company Ltd (the “Project Company”), which is a 100% subsidiary of Kibo and holds 100% of the Mbeya Coal to Power Project (“MCPP”). The terms of the Conversion have been calculated based on a discounted current value for the MCPP of USD100,000,000.
  • Kibo will in addition issue to Sanderson GBP150,000 worth of Ordinary Kibo shares (the “Conversion Shares”) at the prevailing Kibo share price on AIM at the conversion date, as a loan conversion fee.
  • Sanderson and Kibo will implement the Conversion and issue the Conversion Shares by no later than 14th September 2016 and will, inter alia, sign a mutually agreed shareholders’ agreement between Kibo, Sanderson and the Project Company vesting Sanderson’s 2.5% equity interest in the Project Company.
  • Sanderson will grant Kibo access to a new GBP600,000 standby loan facility until 28 February 2017, on similar terms as those of the existing Facility, to be utilized at Kibo’s discretion and on which no fees or costs will be payable until such time as Kibo may elect to make use of the facility.
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[ott_teaser btn_text=”Download” btn_icon=”icon-right-big” btn_url=”https://kibo.energy/wp-content/uploads/RNSSanderson-loan-repayment-V3.0010916.pdf” btn_target=”_blank”]Kibo Announces Re-Negotiated Terms for Settling Sanderson Loan Facility[/ott_teaser]