Kibo Mining to get $2.94m advance payment on Shandong’s power project
Tanzania-focused resources developer Kibo Mining will raise $2.94m from Sanderson Capital Partners as an advance payment on the $3.67m it is due to receive from Shandong Electric Power Construction Corporation (Sepco III) on its Mbeya Coal to Power Project, it said on Wednesday. Kibo recently awarded the engineering, procurement and construction contract for Mbeya, its flagship project, to Sepco III. The parties agreed that Sepco III would refund Kibo half of the $10.94m cost it had already incurred on the project, less the $1.8m already refunded. The funds become payable to Kibo when the project reaches financial close. Kibo said the advance agreed with Sanderson Capital had the effect of forward selling the receivable at a 20% discount. It will be received in cash in five equal tranches from today until June next year. Kibo will issue shares worth $732,036 to Sanderson, representing the difference between the receivable amount and the funds to be provided under this facility. Kibo...
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