KIBO Mining said it would raise £500,000 in a share placement with the proceeds allocated mainly to the development of its Mabesekwa and Benga coal-to-power projects in Botswana and Mozambique respectively. This was following “… faster than expected progress on both projects over the past two months,” the company said in an announcement.
“We are very pleased to see institutional investor interest in Kibo increasing steadily since Kibo announced its energy strategy and after completing the recent MCIPP [Mabesekwa Coal Independent Power Project] and BIPP [Benga Independent Power Project] acquisitions,” said Louis Coetzee, CEO of Kibo Mining.
The shares, totalling just over 9.5 million at a placing price of 5.25 pence per share, were placed with an unnamed Irish-based investment fund, the company said. “The latest placing at the significant premium of 25% sends a very strong message on what investors believe the value proposition is that Kibo has to offer,” said Coetzee.
Kibo Mining’s most progressed power, however, is the Mbeya Coal-to-Power Project in Tanzania. The company is edging closer to a power purchase agreement with the Tanzanian government which will be the one of the major last stepping stones before construction on the 300MW initiative can get underway.
