To view the PDF file, sign up for a MySharenet subscription.

KIBO MINING PLC - Issue of Shares for cash

Release Date: 09/01/2013 09:08
Code(s): KBO
Wrap Text
Issue of Shares for cash

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”)

9 January 2012

Kibo Mining plc raises £725,000 of working capital

Kibo Mining plc (“Kibo” or the “Company”) is pleased to announce that it has completed a
placing of 120,833,333 ordinary shares in the capital of the Company (the “Shares”) with
clients of Kibo’s UK Broker, Northland Capital Partners Ltd. at a placing price of 0.6p to
raise gross proceeds of £725,000 (the “Placing”). The funds raised will be applied towards
the Company’s exploration programs in Tanzania, to investigate further joint venture
opportunities and for general working capital purposes.

As the placing price of the Shares is below the current par value of the Company’s Ordinary
Shares of €0.01, the Company has entered into an arrangement with its major shareholder,
Mzuri Capital Group Ltd (“MCG”), whereby shares held by MCG will be used for the
purposes of settling the Placing. Under the arrangement, MCG’s shareholding will then be
restored through a loan structure soon after the settlement of the Placing by the issue of new
Ordinary Shares to MCG to replace the shares used for settling the Placing. The final number
of shares held by MCG will be the same as it held before the Placing with no benefit received
by MCG. The Company intends to seek shareholder approval in the near future to reduce the
par value of its Ordinary Shares and will advise of further details of this once they have been
finalized.

In relation to this arrangement, with the exception of Louis Coetzee and Tinus Maree who are
associated with MCG and have therefore recused themselves, the directors of the Company
consider, having consulted with RFC Ambrian Ltd, its nominated adviser, that the terms of
the transaction are fair and reasonable insofar as its shareholders are concerned.

Application will be made for the new Shares to be admitted to trading on both the AIM and
JSE AltX markets with settlement expected to be completed before the end of January. The
Shares will rank pari passu with the Company’s existing issued Ordinary Shares. Following
the issue of the new Shares the Company’s total issued share capital will be 1,247,355,175
Ordinary Shares of €0.01 each.
Louis Coetzee      +27 (0)83 2606126        Kibo Mining plc           Chief Executive Officer



Andreas Lianos     +27 (0)83 4408365        River Group                Corporate Adviser and

                                                                   Designated Adviser on JSE

Nick Bealer        +44 (0)207 7109612       Cornhill Capital                     Joint Broker
                                            Ltd



Tim                 +44 (0) 207             Northland Capital                    Joint Broker
Metcalfe/Matthew    9768800                 Partners Limited
Johnson

Stuart Laing       +61 8 94802500           RFC Corporate          Nominated Adviser on AIM
                                            Finance Limited

Matt Beale         +44 (0)7966 389196       Fortbridge                       Public Relations



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


General Background & Strategy

Kibo was established in early 2008 to explore and develop mineral deposits in Tanzania, East
Africa and was admitted to AIM on 27 April 2010 and AltX in South Africa on 30 May 2011.
The Board of Kibo is composed of professionals whose experience include mineral
exploration, mine development, mining finance, tax, law, mergers and acquisitions, and
financial control of public companies. It is supported by competent and motivated Tanzanian
staffs that operate from Kibo's operations office in Dar es Salaam.

The mineral assets of the Company now comprise five projects in Tanzania - Haneti (nickel,
PGE and gold), Morogoro (Gold), Lake Victoria (Gold), Rukwa (Coal) and Pinewood (Coal
& Uranium) which give Kibo access to 38,000 km2 of early stage exploration licences in
Tanzania's premier gold mining region, the Lake Victoria Goldfield, within the emerging
gold exploration regions in eastern Tanzania and uranium and coal regions in south-western
Tanzania.

The Rukwa and Pinewood projects will provide Kibo shareholders with exposure to an
attractive portfolio of strategic energy assets in Tanzania. Importantly, they are situated
within and close to the Mtwara Corridor, an area where the Tanzanian Government has
committed to significant infrastructure development and which has seen recent multi-million
dollar investment in coal and coal-fired power stations and uranium exploration.
The Rukwa project is substantially more advanced than Kibo’s existing exploration projects,
with a significant Mineral Resource of thermal coal already defined. This provides nearer
term development and commercialisation potential, complementing the earlier stage existing
projects held by Kibo. This is further supported by the memorandum of understanding that
has already been entered into with a major Asian conglomerate for the development of a coal
mine and mine-mouth coal-fired power plant based on the Rukwa project.

In addition, the Pinewood project encompasses a significant ground holding of prospective
Karoo sequence sedimentary rocks. These sediments are attracting considerable interest
from international companies exploring for uranium and coal mineralisation following some
notable discoveries in recent years.

Kibo's objective is to build shareholder value in a sustainable manner. This objective will be
pursued primarily through active exploration of its own projects and by using the Company's
experience in Tanzania to acquire attractive exploration and development assets on
competitive terms that can be moved swiftly up the value curve by using the Company’s own
skills base whilst also seeking to benefit from strategic collaborative relationships with
industry leaders who have special skills and competencies within their chosen fields of focus.
Kibo will undertake continual risk assessment of its projects and take whatever actions it
believes are necessary to ensure that these risks are mitigated.

9 January 2012
Johannesburg
Designated and Corporate Advisor

River Group

Date: 09/01/2013 09:08:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

Share This Story