Aim- and AltX-listed Kibo Mining has settled the outstanding balance of £1.11-million on the forward payment facility that was agreed on in December 2016 with Sanderson Capital Partners.
Sanderson will be issued about 21-million new ordinary Kibo shares, representing an 8.45% stake in Kibo.
The settlement with Sanderson will allow Kibo to receive the full payment of $3.7-million due from its engineering, procurement and construction contractor Sepco III.
“With the settlement of the Sanderson facility, the $3.7-million due from Sepco III and two possible further investments by it, we now have the realistic expectation of a strong short- to medium-term cash position.
“Additionally, we now have no outstanding liabilities, which puts us in a much stronger position in terms of negotiations related to debt and equity funding for the three projects we are currently advancing,” Kibo CEO Louis Coetzee said on Monday.
The three projects are the Mbeya coal-to-power project, in Tanzania; the Mabesekwa coal independent power producer project, in Botswana; and the Benga independent power project, in Mozambique.