28 January 2016

Kibo Mining Plc (“Kibo” or the “Company”) (AIM:KIBO; JSE AltX: KBO), the Tanzania focused mineral exploration and development company, is pleased to announce that the Company has now received the amount of £522, 800 from the delayed receipt of final proceeds from its February 2015 placing with Hume Capital Securities plc (“Hume Capital”).

On 25 January 2016, the Joint Special Administrators paid £522,800 of the total £526,000 (representing the consideration for 10,520,000 shares which were to be issued to third party investors) and that had previously been paid into Hume Capital’s client money account during the February 2015 placing, to Kibo (“Hume Proceeds”). The amount of £3,200 was deducted from the total and represents costs of the administration.

To bolster the Company’s cash position further, amidst very difficult market conditions, Sanderson Capital Partners Ltd (“Sanderson”) was approached in an effort to re-negotiate the repayment terms of the unsecured interest free bridge loan facility which it advanced to the Company. (Please see RNS of 04 November 2015). In this regard the Company was able to agree the following more favorable repayment terms:

  1. A minimum of 60% of the loan amount (i.e. £300,000) will be repaid in Ordinary Shares of the Company and not in cash, at a price equal to the 30 day VWAP of Kibo’s share price on the date at which repayment is due, being the earlier of three months from the date of the original loan agreement or the date on which Kibo receives the Hume Proceeds (“Repayment Date”);
  2. Repayment of no more than 40% of the loan amount (i.e. £200, 000), as well as the £50, 000 fee component, due in cash at the Repayment Date, will be deferred for another 28 calendar days from the Repayment Date; and
  3. Any additional costs / fees that may be incurred with the extension, implementation and execution of the re-negotiated loan agreement will be settled in Ordinary Shares of the Company, with the price of such shares to be determined in the same manner as under point 1 It is anticipated that the issuance of any Ordinary Shares for such additional costs / fees would occur contemporaneously with those being issued under point 1 above.
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[ott_teaser btn_text=”Download” btn_icon=”icon-right-big” btn_url=”https://kibo.energy/wp-content/uploads/Final-RNS-Hume-Placing-Update-pdf.pdf” btn_target=”_blank”]Kibo Receives Proceeds from Hume Placing and Secures New Favorable Settlement Terms in Re-Negotiated Sanderson Loan Agreement[/ott_teaser]