Kibo Mining (LON:KIBO) has confirmed the issue of 1.6mln shares to Sanderson Capital Partners.
The share issue, priced at 6p, came upon receipt of £500,000 in relation to the loan facility announced on November 4.
It provides capital to the company in lieu of monies currently held by the administrators of Hume Capital, which was one of the brokers involved in Kibo share placing earlier this year.
Louis Coetzee, Kibo chief executive, said: “Kibo has elected to draw down the loan facility from Sanderson in order to prevent the delay in the receipt of these funds from holding up work on the Mbeya Coal to Power Project (MCPP) and Kibo's other projects."
Coetzee added that the company has had confirmation that the £526,000 held by the administrators will be released a definitive timetable has not been provided.