02 March 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 today entered into a loan facility (the “Facility”) with Sanderson Capital Partners Limited (“Sanderson”) for an amount up to £1,500,000 to be utilised by Kibo, at its sole discretion and election, for contingency funding, during the term of the Facility.

The Facility comprises the following:

  • An unsecured, interest free, fixed term loan due for repayment no later than 31 August 2016;
  • The loan can be drawn down in five £300,000 tranches no less than 40 days apart, with tranches three, four and five subject to successfully achieving certain specified project deliverables;
  • A fee of up 7 million Ordinary Shares in Kibo, capped by a maximum value of £350,000 associated with the arrangement and implementation of the Facility, will become payable if the Facility is utilised (the “Arrangement Fee”);
  • The Arrangement Fee will be payable on the day the Facility is activated by Kibo;
  • In addition to the Arrangement Fee, a drawdown fee of £51,000 is payable to Sanderson in respect of each of the five £300,000 drawdown tranches;
  • Each drawdown fee will be payable in 1,186,046 Ordinary Shares in Kibo, subject to certain share price limits, on or before any particular drawdown date;
  • At the completion of the term of the loan, Kibo will have the option to settle the first £750,000 of the monies borrowed in either cash or Ordinary Shares in Kibo;
  • Should Kibo be unable to settle the second £750,000 of monies borrowed in cash it will have the option to settle this portion in Ordinary Shares in Kibo; and
  • In the event where the loan or any part thereof is settled in shares, the price at which such Ordinary Shares will be issued will be the 30 day VWAP for Kibo Ordinary Shares that traded during the 30 days preceding the settlement date.
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