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Kibo raises £725 000 for Tanzania-focused activities

9th January 2013

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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JOHANNESBURG (miningweekly.com) – Tanzania-focused exploration and development company Kibo Mining said on Wednesday that it had raised £725 000 of working capital for its Tanzania-focused activities.

The funds would be distributed between general working capital, exploration programmes and investigations into further joint venture opportunities.

The AltX- and Aim-listed group, which stated in December that it had experienced difficulties securing further exploration and development programme funding, placed almost 121-million ordinary shares at 0.6p.

The company entered into an agreement with major shareholder Mzuri Capital Group (MCG) to settle the placing using the shares currently held by MCG, after Kibo placed the price of the shares below the current par value of €0.01.

Following the placement, MCG’s shares would be replaced and its shareholding fully restored through the issuing of new ordinary shares.

The settlement was expected to be completed by the end of this month.

Kibo also stated that it would seek shareholder approval to reduce the par value of its ordinary shares.

In October, Kibo completed the acquisition of South Africa-based Mayborn Resource Investments and Canada-based Mzuri Energy, adding significant coal and uranium assets to Kibo’s commodity portfolio in Tanzania.

Edited by Creamer Media Reporter

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