KIBO Mining has received commitments to raise 750,000 UK pound (some 2.4bn/-) before expenses for coal-to-electricity project in Mbeya.
The firm, listed at London Stock Exchange's AIM, said they would raise the money through placing of 17.6m shares at 4.25p each. Proceeds from the placing will be used to build on the company's plans to create a strategic regional electricity supplier.
"Our portfolio of power projects, including our flagship 300MW Mbeya coal to power project, is rapidly advancing and I look forward to updating both new and existing shareholders on progress soon." said Chief Executive Officer, Louis Coetzee.
The placing is being carried out by Kibo's UK broker, Beaufort Securities and the company expects to pay an aggregate of 75,000 UK pound(240m/-) in expenses. Kibo is a Tanzania-based minerals exploration and development company. Application will be made for the New Ordinary Shares to be admitted to trading on AIM and the JSE AltX markets.
Trading in the New Ordinary Shares is expected to commence on AIM and the JSE on or around Monday next Monday. Following admission, the company will have 412,901,424 shares in issue. The Mbeya coal to power project comprises the development of the Mbeya Coal Mine, a 1.5Mt p/a mining operation and the Mbeya Power Plant, a 300 MW mine-mouth thermal power station.
Fortnight ago, Tanesco signed a memorandum of understanding (MoU) with Kibo as a precursor to the finalisation of a power purchase agreement (PPA) for the Mbeya coal-to-power project. The PPA is expected to be finalised as early as the end of the first quarter of this year, in accordance with the timelines previously agreed with Tanesco and the Tanzania Ministry of Energy.
The MoU sets out clear guidelines, deliverables and timelines for the conclusion of the PPA, which will enable Aim- and JSE-listed Kibo to move towards the conclusion of the final development phase of the project which includes construction and commissioning.