Mozambique Mining: Kibo Mining receives funding for Moz Benga project

Kibo Mining (AIM:KIBO) has received a commitment for £500,000 (US$657,366) in funding via a placement that will be used to expedite feasibility studies at its projects.

The placement includes 9.5 million ordinary shares at a price of 5.25p per share to be bought by an unnamed Ireland-based investment fund.

The financing was required after the Mabesekwa independent coal to power project on Botswana and the Benga independent power project in Mozambique both progressed faster than expected over the past two months.

The company in April raised £1.5 million through a share placement to fund the ongoing FS at Mabesekwa.

Trading of the new ordinary shares is expected to start on AIM and on the Johannesburg Stock Exchange on or around August 3.

Kibo CEO Louis Coetzee said institutional investor interest in Kibo had been increasing since it announced its energy strategy and after completing the acquisitions of the two projects.

“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,” he said.

Kibo’s shares were trading at 4.3p Monday, up 3.61% from the previous close.