Kibo Mining raises £950,000.00 in Share Placing

RNS Number : 2059G

Kibo Mining Plc

02 March 2015

 

Kibo Mining Plc (Incorporated in Ireland)

(Registration Number: 451931)

(External registration number: 2011/007371/10)

Share code on the JSE Limited:KBO Share code on the AIM:

KIBO ISIN:IE00B61XQX41

("Kibo" or "the Company")

  02 March 2015

Kibo Mining raises £950 000.00 in Share Placing

Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX: KBO), the Tanzania focussed mineral exploration and development company is pleased to announce it has received commitments to a share placing of 19 000 000 new ordinary shares of Eur. 0.015 in the capital of the Company with clients of Kibo's UK Broker, Hume Capital Securities Plc, at a placing price of 5p per share (the "Placing Shares"), to raise gross proceeds of £950 000.00 before expenses (the "Placing").

Application will be made for the Placing Shares to be admitted to tradingon AIM and the JSE AltX markets.Trading in the  Placing Shares  is expected to commenceon AIM and the JSE on or around 6 March  2015("Admission"). On completion of Admissionthe Companywill have 303,238,757 shares in issue. 

 Louis Coetzee, CEO of the Company,commented today: " We are very pleased to undertake this placing primarily because of the strategic advantage of bolstering our cash position at this key time in the company's development. This funding provides the Company with a robust working capital position as we finalise various commercial discussions and seek to maximise the value for shareholders from our three key assets at Rukwa Coal to Power, Imweru/Lake Victoria Goldfields and Haneti Nickel.

The Board of Kibo Mining share investors' interest in controlling company share dilution, and this placing has been undertaken because we believe the additional financial strength achieved will provide a platform for further significant business development and growth in the value of the Company's assets and interests. 

We continue to work proactively to progress various elements of the Company's business and look forward to reporting further significant progress to shareholders in the near future."

Contacts

Louis Coetzee	[phone]	Kibo Mining plc	Chief Executive Officer
Andreas Lianos	[phone]	Kibo Mining plc & River Group	Executive Director, Corporate Adviser and Designated Adviser on JSE
Jon Belliss	+ 44 (0) 20 3216 2630	Hume Capital (Previously XCAP)	Broker
Oliver Morse	[phone]	RFC Ambrian Limited	Nominated Adviser on AIM
Daniel Thöle Lucinda Alderson	[phone]	Bell Pottinger	Investor and Media Relations

Kibo Mining - Notes to editors

Kibo Mining is listed on the AIM market in London and the AltX in Johannesburg. The Company is focused on exploration and development of mineral projects in Tanzania, and controls one of Tanzania's largest mineral right portfolios. Tanzania provides a secure and stable operating environment for the mineral resource industry and Kibo Mining therein.

Kibo Mining holds a thermal coal deposit at Rukwa, which has a significant JORC compliant defined resource (See Table 1 below), and is developing a 250-350MW mouth-of-mine thermal power station with an established management team that includes Standard Bank as Financial Advisor.  Kibo is undertaking a Coal Mining Definitive Feasibility Study and a Power Pre-Feasibility Study for Rukwa with an integrated Coal-Power interim study report to be released in the near term.

The Company also has extensive gold focused interests including Lake Victoria Goldfields and Morogoro projects. At Lake Victoria, the Company has projects with a 550,000oz JORC compliant gold Mineral Resource at Imweru Project (See Table 2 below) and a 168,000oz NI 43-101 compliant gold Mineral Resource at the Lubando Project (See Table 3 below) in which the Company holds a 90% attributable interest. The Company is currently undertaking a Definitive Feasibility Study on its Imweru Project.

Kibo also holds the Haneti Project on which the latest technical report confirms prospectivity for nickel, PGMs, gold and strategic metals including Lithium. 

Kibo Mining further holds the Pinewood (coal & uranium) project where the company has entered into a 50/50 Exploration Joint Venture with Metal Tiger plc.

Finally the Company also holds the Morogoro (gold) project where the company has entered into a 50/50 Exploration Joint Venture with Metal Tiger plc.

The Company's projects are located in the established and gold prolific Lake Victoria Goldfields, the emerging goldfields of eastern Tanzania and the Mtwara Corridor in southern Tanzania where the Government has prioritised infrastructural development attracting significant recent investment in coal and uranium. The Company has a positive working relationship with the Tanzanian government at local, regional and national levels and works hard to maintain positive relationships with all communities where company interests are held.  The Company recognises the potential to enhance the quality of life and opportunity for Tanzanian citizens through careful development of its projects.

Updates on the Company's activities are regularly posted on its website www.kibomining.com   

Johannesburg

02 March 2015

Corporate and Designated Adviser

River Group

 

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