Kibo Mining PLC (LON:KIBO) today unveiled plans to raise £750,000 via a share placing as it progresses its strategy to create a regional electricity supplier, although it also dismissed press speculation that it has signed a power purchase agreement in Tanzania.
In a statement, the AIM-listed firm said it has received commitments for a placing of 17,647,060 ordinary shares at a price of 4.25p each. Kibo shares closed trading today at 5.75p, up 1.8% on Monday's close.
READ: Kibo Mining signs Memorandum of Understanding with Tanzanian power utility
Louis Coetzee, Kibo’s CEO, said: “The funds raised today enable us to build on our strategy to create a strategic regional electricity supplier."
He added: "Our portfolio of power projects, including our flagship 300MW Mbeya Coal to Power Project ('MCPP'), is rapidly advancing and I look forward to updating both new and existing shareholders on progress soon."
Kibo said that the placing has been arranged by its UK broker, Beaufort Securities Limited, and the company expects to pay an aggregate of £75,000 for expenses associated with the fund-raising.
Press speculation dismissed
In a separate announcement later, Kibo Mining also announced that, contrary to press speculation, the company has not signed a Power Purchase Agreement (PPA) with Tanzania Electric Supply Company (TANESCO).
However, it said it remains in advanced discussions with TANESCO and the Ministry of Energy regarding the PPA for its flagship 300MW Mbeya Coal to Power Project (MCPP).
The group pointed out that the PPA will enable Kibo to move towards execution and conclusion of the final development phase of the MCPP.
-- Adds press speculation statement, updates share price --