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Kibo Mining raising £1.5m through placing
Africa-focussed energy and resource company Kibo Mining confirmed on Tuesday that it has received commitments to raise £1.5m before expenses via a placing of 28,571,428 ordinary shares, at a placing price of 5.25p per share.
The AIM-traded firm said the placing was arranged by its UK broker, SVS Securities, and Novum Securities.
Novum was set to be appointed joint corporate broker with SVS on Tuesday, following completion of the placing.
The board said the funds from the placing would go towards general working capital and expediting ongoing advanced feasibility studies at the Mabesekwa independent coal-to-power project in Botswana, as well as strengthening its financial position ahead of the start of further work at the Mbeya coal-to-power project following the signing of the power purchase agreement, which is expected "shortly".
"This remains an exceptionally busy and exciting time for Kibo," said CEO Louis Coetzee.
"The placing enables the company to expedite the feasibility studies of the Mabesekwa project in Botswana as well as strengthening the company's financial position, providing it with sufficient cash resources to conclude the funding and financial close process on the MCPP, as the latter heads strongly towards finalizing the PPA."