Kibo Mining PLC (LON:KIBO) said today it has issued £1.55mln in convertible loan notes to a new, unnamed high net worth investor, directors and management of the company, and Sanderson Capital Partners Limited.
The Tanzania-focused mineral exploration and development company said the subscription raises £500,000 of new capital, and also satisfies £260,000 of awards in lieu of the company's Management Incentive Scheme.
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It is also in settlement of new terms agreed, covering £790,000 of the discounted debt sale facility currently in place between Sanderson and the company.
Louis Coetzee, CEO of Kibo Mining, said in a statement: "All parties involved in the uptake of the convertible loan notes understand the potential of the Company and have agreed to subscribe, importantly at a price not less than £0.05 per Share.”
He added: “We are delighted to welcome a new highly supportive investor and also agree terms with Sanderson, who have been extremely supportive since we arranged the facility in December last year.”
Coetzee concluded: “With a strong balance sheet and limited field activity, we currently have a relatively low cash burn. Finally, we believe the decision of the Directors and management team to accept the Notes in lieu of bonus shares provide a good signal to the market that we believe there is significant value to be added going forward."