Johannesburg - Kibo Mining says it is confident of recouping £526 000 - some R11.5 million - from its former brokers, Hume Capital, which went bust in March.
The Tanzanian explorer says in an announcement to shareholders that a court in the UK has now approved an order allowing for the client money pool to be distributed.
The amount will be paid out no later than 2 months from October 2, it explains.
It says it understands most of the amount, which was the payment for the issue of 10.5 million shares to third parties, will be recouped, less administration costs.
CEO Louis Coetzee says “we are pleased that all uncertainty related to the February Hume placing has now been removed. Kibo will receive substantially all of the £526 000 still owed to the company and this will have a significantly positive impact on the company's cash position”
In March, the London Stock Exchange told shareholders Hume had defaulted and administrators had been appointed.
Kibo Mining is listed on the AIM market in London and the AltX in Johannesburg. It is focused on exploration and development of mineral projects in Tanzania, and controls one of Tanzania’s largest mineral right portfolios.
Kibo Mining holds a thermal coal deposit near Mbeya in southern Tanzania.
The explorer also holds the Pinewood (coal and uranium) and Morogoro (gold) projects where the company has entered into a 50/50 exploration joint ventures with Metal Tiger (AIM listed) on the projects.
In the year to December, the group made a loss of £2.3 million, as its customary for exploration companies, and had cash on hand of £186 447.
IOL