Kibo Mining PLC (LON:KIBO) revealed it is raising £1.5mln of new funds, through a share sale arranged by brokers SVS Securities and Novum Securities.
A total of 28.57mln shares are being issued at a price of 5.25p each.
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The company told investors that the injection of funds will be used for working capital and to expedite ongoing advanced feasibility studies at the Mabesekwa independent coal to power project, in Botswana.
It will also strengthen the company’s financial position before the start of further work at the Mbeya coal to power project once a power purchase agreement has been signed, which Kibo said is expected shortly.
“This remains an exceptionally busy and exciting time for Kibo,” said Louis Coetzee, Kibo chief executive.
“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."
Additionally, Kibo also revealed it has made some structural changes to its board and management teams, although the changes do not involve any resignations or new appointments.
Current non-executive director Tinus Maree now joins the executive committee, meanwhile, Noel O'Keefe and Andreas Lianos will move into non-executive roles.
Lianos will be instrumental in financial oversight as non-executive financial director, Kibo noted, and at the same time, Pieter Krügel joins the executive committee as chief financial officer.