Kaboko Mining Limited is pleased to confirm the completion of Tranche A financing as part of the $10 million Prepayment Debt Facility and long term manganese ore Off-Take Agreement with Noble Resources International Pte. Ltd (Noble), a wholly owned subsidiary of Noble Group Limited. The draw-down of the final $3 million of the $4.5 million Tranche A financing facility has been completed, following satisfaction by Kaboko of Noble’s final due diligence items in respect of the licensing conditions for the Northern Manganese Project at Mansa, Zambia. Several other conditions to draw down (including shareholder approval) have been waived and will be finalised by 31 May 2013. The Company has previously received amounts totalling $1.5 million from the Tranche A financing facility.

With necessary funding now in place to complete the mine development and associated plant and equipment purchases the Company is excited to progress the development of the Northern Manganese Project at Mansa, Zambia, with plans to commence production at a rate of 5,000 tonnes per month in Q3 2013 and ramping up to 10,000 tonnes per month by Q4 2013|Q1 2014. Commenting on the completion of the Tranche A financing Kaboko CEO, Mr Tokkas Van Heerden, said “with the Tranche A financing with Noble complete Kaboko is now fully funded to commence mining from its Northern Manganese Project at Mansa in the coming months and deliver into our supply agreement with Noble, with production of 10,000 tonnes per month expected by end of 2013.”

“We will also be looking to develop our other high grade manganese projects in Zambia further over the coming 12-18 months so as to increase production across our portfolio and meet the demand for this product from groups in Europe and Asia. In addition to the $10m Prepayment Facility, the Company and Noble have also previously entered into a binding Manganese Ore Off-take Agreement (refer ASX announcement dated 30 July 2012 and 24 December 2012). Under the terms of the Off-take Agreement, the Company will deliver to Noble 180,000 DMT per year of 48% manganese lump ore from the Company’s Zambian Manganese Projects.

Placement
In addition to the completion of the Tranche A financing with Noble, the Company is also pleased to advise that it has completed a placement to sophisticated investors raising $600,000, by issue of 60,000,000 shares (at $0.01 per share) and 60,000,000 attaching unlisted options ($0.01; expiry 31 January 2016). This funding will be used by the Company for further exploration and development activities across its Zambian manganese projects, other opportunities and general working capital. An appendix 3B is attached.