Tanzanian-based coal-to-power company Kibo Mining said on Tuesday it had received commitments to raise £750,000 via a placing of 17,647,060 ordinary shares.
Kibo said the placing had been arranged by its UK broker, Beaufort Securities Limited, and that it expected to pay an aggregate of £75,000 expenses associated with the placement.
Kibo is listed on the AIM market in London and the AltX in Johannesburg. The company focuses on exploration and development of mineral projects in Tanzania, and controls a large mineral right portfolios.
It is now in the final stages of completing an integrated bankable feasibility study in a bid to develop a 250-350MW mouth-of-mine thermal power station, the Mbeya Coal to Power Project.
Kibo chief executive Louis Coetzee said the funds raised from placing the ordinary shares would boost the company's strategy of being a strategic regional electricity supplier.
"The funds raised today enable us to build on our strategy to create a strategic regional electricity supplier. Our portfolio of power projects, including our flagship 300MW Mbeya Coal to Power Project, is rapidly advancing and I look forward to updating both new and existing shareholders on progress soon."
Coetzee said an application would be made for the new ordinary shares to be admitted to trading on AIM and the JSE's AltX and that trading in the new ordinary shares was expected to commence on AIM and the JSE on or around March 5.
- African News Agency (ANA)