JOHANNESBURG (miningweekly.com) – Tanzania-focused mineral exploration and development company Kibo Mining on Monday announced that it would raise £600 000 through the placing of 34.29-million new ordinary shares at 1.75p a share.
All of Kibo’s directors would participate in the placing, on the same terms as other investors, for a cumulative amount of £100 000.
"We are pleased with the results from the latest placing, given the extremely difficult funding environment in which exploration companies [have found] themselves over the past years,” Kibo CEO Louis Coetzee commented.
He added that the directors’ participation in the placing further demonstrated their continued confidence in the company and its future, “a position that was underscored by the significant oversubscription in the placing”.
Kibo said that, as it did not currently have sufficient issued authorised capital to accommodate the full placing, the delivery of shares to the value of £127 500, or about 7.29-million shares, would be deferred until after the company’s annual general meeting (AGM) on July 30.
An application would be made for the placing shares to be admitted to trading on the Aim and the AltX markets. Trading in 27-million of the placing shares was expected to start on or around July 20.
Contingent on the passing of a resolution to increase the company's authorised share capital at its AGM, the delivery of the balance of the placing shares – 7.29-million – to subscribers and the admission of these shares on the Aim and the AltX was expected to take place in early August.