TIDMKIBO
RNS Number : 7901X
Kibo Mining Plc
24 February 2017
Kibo Mining Plc (Incorporated in Ireland)
(Registration Number: 451931)
(External registration number: 2011/007371/10)
Share code on the JSE Limited: KBO
Share code on the AIM:KIBO
ISIN: IE00B97C031
("Kibo" or "the Company")
24 February 2017
Cessation of Metal Tiger Joint Ventures in Tanzania
Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX:
KBO), the Tanzania focused mineral exploration and development
Company, is pleased to announce that it has reached agreement with
Metal Tiger plc, the Company's Joint Venture ("JV") partner in
Tanzania to cease JV activities at the Pinewood and Morogoro Joint
Ventures with immediate effect and relinquish the licences back to
the local authorities.
Background information with regard to the JVs can be found in
market announcements released on 21 November 2014 in respect of
Pinewood and 19 January 2015 in respect of Morogoro.
Both Metal Tiger plc and Kibo Mining plc have experienced
considerable success in respect of certain other projects of their
business portfolio and this has led to these interests becoming the
absolute focus of each company.
Metal Tiger's investment in Botswana has seen a substantial and
developing Copper/Silver discovery and significant progress is
being made in the Company's investment in Thailand where the JV
partner is looking to permit and produce from a longstanding
silver/lead/zinc mine with processing plant (requiring
refurbishment) in-situ. Kibo Mining has substantially advanced its
Mbeya Coal to Power Project (as well as its Imweru and Lubando)
gold projects, as evidenced by the recent completion of the
Integrated Bankable Feasibility Study announced to the market on 23
January 2017.
From a corporate perspective each of the projects noted latterly
have the ability to materially further the success of the
companies, and also provide a significant opportunity, through
continuing investment, to have a major local economic impact,
providing much needed commodities in the case of Botswana and
Thailand, and power in the case of Tanzania. Furthermore, should
the companies continue to invest successfully, there will be a
continuing increase in the number of employment opportunities and
socio-economic benefits for the local communities where the
projects are situated and also for the local, regional and national
governments through the generation of mineral royalties and
corporate taxation.
It is therefore appropriate that both companies focus their
efforts, energies and resources on these important core projects
and take the steps necessary to reduce non-core investments and
activities, including Pinewood and Morogoro, which although
worthwhile in themselves, could distract each company from their
main commercial purpose.
Both companies can confirm that there are no material ongoing
costs to be covered as a result of the cessation of the Joint
Ventures.
Metal Tiger retains 10m warrants to subscribe for Kibo Mining
plc new ordinary shares at a price of 9p (and subject to two
exercise price increases if Kibo Mining shares trade at 18p or
higher for 15 consecutive trading days - full terms detailed in 19
January 2015 announcement) with an exercise period until 25
February 2018.
Metal Tiger has confirmed it will not invest in Tanzania for a
minimum period of 6 months from today's date, however Metal Tiger
agrees that Kibo Mining may work with other parties to reconstruct
a portfolio of Uranium interests in Tanzania, should Kibo choose to
so do at some point in the future.
Kibo Mining's CEO. Louis Coetzee commented: "In late 2014 and
early 2015 the GBP450,000 invested by Metal Tiger made a material
difference to the financing of Kibo Mining at the time, and we were
and are grateful for that support.
The Joint Ventures at Pinewood and Morogoro have not progressed
as planned as explained above and although unfortunate, this
reflects the need to focus investment correctly in smaller
companies with multiple projects. Our decision is however in
perfect alignment with our stated strategy to reduce the Company's
exposure to early stage exploration projects.
We wish Metal Tiger success with their ventures going
forward."
Michael McNeilly, CEO of Metal Tiger plc commented: "Both Kibo
Mining and Metal Tiger commenced the Joint Ventures as smaller
companies with earlier stage interests. Both companies have been
fortunate and achieved considerable success in certain projects and
it has been necessary to focus time and resources on the areas of
our business where the most rapidly advancing progress was
possible.
Given the need for continuing focus for commercial reasons, and
reflecting the impact our commercial success would have on the
local economies in which we work, it is essential for us to ensure
we focus our efforts in the most important areas.
We wish our friends at Kibo Mining great success with their work
and are grateful for the opportunity that the investment in Kibo
Mining in late 2014 and early 2015 and the Joint Ventures
themselves, provided for the Metal Tiger business and its
shareholders."
Contacts
Louis Coetzee +27 (0) 83 2606126 Kibo Mining plc Chief Executive Officer
---------------- --------------------- -------------------- --------------------------
Andreas Lianos +27 (0) 83 4408365 River Group Corporate Adviser
and
Designated Adviser
on JSE
---------------- --------------------- -------------------- --------------------------
Jon Belliss +44 (0) 207 382 Beaufort Securities Broker
8300 Limited
---------------- --------------------- -------------------- --------------------------
Oliver Morse +61 8 9480 2500 RFC Ambrian Limited Nominated Adviser
on AIM
---------------- --------------------- -------------------- --------------------------
Liz Morley +44 (0) 203 772 Bell Pottinger Investor and Media
/ 2500 Relations
Anna Legge
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Kibo Mining - Notes to editors
Kibo Mining is listed on the AIM market in London and the AltX
in Johannesburg. The Company is focused on exploration and
development of mineral projects in Tanzania, and controls one of
Tanzania's largest mineral right portfolios. Tanzania provides a
secure and stable operating environment for the mineral resource
industry and Kibo Mining therein.
Kibo Mining holds a thermal coal deposit at Mbeya, which has a
significant NI 43-101 compliant defined resource, and is developing
a 250-350 MW mouth-of-mine thermal power station, the Mbeya Coal to
Power Project ("MCPP"), previously called Rukwa Coal to Power
Project ("RCPP"), with an established management team that includes
ABSA / Barclays as Financial Advisor. Kibo has completed a Coal
Mining Definitive Feasibility Study and a Power Pre- Feasibility
Study for the Mbeya project and has recently announced the
completion of an integrated Bankable Feasibility Study report for
the project. On 25 August 2016, Kibo signed an Agreement with China
based EPC contractor SEPCO III granting it the right to become the
sole bidder for the EPC contract to build the power plant component
of the MCPP in exchange for SEPCO III refunding 50% of the
development costs incurred by Kibo to date on the project. Kibo has
already received the first tranche of this funding in the amount of
US$1.8 million on the 5th September 2016
The Company also has extensive gold focused interests including
Lake Victoria Goldfields and Morogoro projects. At Lake Victoria,
the Company has 100% owned projects with a 550,000 oz. JORC
compliant gold Mineral Resource at the Imweru Project and a 168,000
oz. NI 43-101 compliant gold Mineral Resource at the Lubando
Project. The Company is currently undertaking a Definitive
Feasibility Study on its Imweru Project.
Kibo also holds the Haneti Project on which the latest technical
report confirms prospectivity for nickel, PGMs, gold and strategic
metals including lithium.
Kibo Mining further holds the Pinewood (coal & uranium)
project where the company has entered into a 50/50 Exploration
Joint Venture with Metal Tiger plc.
Finally, the Company also holds the Morogoro (gold) project
where the company has also entered into a 50/50 Exploration Joint
Venture with Metal Tiger plc.
The Company's projects are located in the established and gold
prolific Lake Victoria Goldfields, the emerging goldfields of
eastern Tanzania and the Mtwara Corridor in southern Tanzania where
the Government has prioritized infrastructural development
attracting significant recent investment in coal and uranium. The
Company has a positive working relationship with the Tanzanian
government at local, regional and national levels and works hard to
maintain positive relationships with all communities where company
interests are held. The Company recognizes the potential to enhance
the quality of life and opportunity for Tanzanian citizens through
careful development of its projects.
Updates on the Company's activities are regularly posted on its
website www.kibomining.com
Johannesburg
24 February 2017
Corporate and Designated Adviser
River Group
This information is provided by RNS
The company news service from the London Stock Exchange
END
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