TIDMKIBO
RNS Number : 7610G
Kibo Mining Plc
10 August 2016
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:IE00B97C0C31
("Kibo" or "the Company")
10 August 2016
Kibo signs Definitive Agreement with Lake Victoria Gold Ltd for
the Consolidation of the Imweru & Imwelo Gold Projects
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 signed a Share Purchase
Agreement (the "Agreement") to effect the consolidation of the
Imweru and Imwelo gold projects. Under the Agreement, Sloane
Investments Limited ("Sloane"), a wholly owned subsidiary of the
Company, will acquire Tanzoz Minerals Limited ("TML"), a wholly
owned subsidiary of Lake Victoria Gold ("LVG") (the "Transaction").
The Agreement follows the Memorandum of Understanding ("MOU")
signed between Kibo and LVG which was announced on 2 June 2016 and
completion of legal and technical due diligence for the proposed
consolidation.
The principle terms of the Agreement between the Company and LVG
are:
-- Sloane, a 100% UK subsidiary of Kibo and owner of the Imweru
project, will acquire 100% of TML, the wholly owned Tanzanian
subsidiary of LVG, owner of the Imwelo gold project
-- Sloane will acquire the whole of the issued share capital of
TML in consideration for Sloane shares that will be issued and
allotted to LVG or its nominee(s) (the "Consideration Shares")
-- Upon completion Kibo will hold 52% of the shares in Sloane,
and LVG will hold the remaining 48%, prior to funding and stock
exchange admission
-- Allotment of a portion of the Consideration Shares to LVG
will be deferred pending confirmation of assignment of title of
licenses within the Imwelo gold project
Conditions precedent under the Agreement are:
-- Sloane, as the 100% owner of the Imweru and Imwelo projects,
will become a public limited company and will make application for
its shares to be admitted to trading on AIM and the JSE
-- Admission to trading on AIM and the JSE to take place within
three months of completion of the Transaction
Upon completion of the Transaction, Sloane will change its name
to Katoro Gold Mining Limited ("Katoro") and the initial board of
directors of Katoro will consist of Louis Coetzee, who will assume
the role of Executive Chairman, Seth Dickinson who will assume the
role of CEO, and two independent directors, still to be appointed.
It is intended that following completion, Kibo shareholders will be
issued shares in Katoro in proportion to their shareholding in
Kibo.
The initial mineral assets of Katoro will comprise the mineral
rights within Kibo's Imweru Project and LVG's Imwelo Project which
together cover an area of approximately 480 km(2) as a contiguous
block, 35 km east of the producing Geita mine within the Lake
Victoria Goldfield in northern Tanzania. The assets include a
combined gold mineral resource of approximately 755,200 oz, which
it is hoped will be increased to >1 million oz. and provide the
basis for a mine development with a near term production target of
50,000 oz. gold per annum within 12 to 18 months. The medium-term
production target for Katoro is set at 100,000 oz, per annum.
Louis Coetzee, CEO of Kibo Mining, said: "I am delighted that we
have signed this agreement with Lake Victoria Gold to consolidate
the Imweru and Imwelo gold projects. The Agreement provides a
platform for us to proceed rapidly with the development of the
Katoro gold project in order to extract maximum value from the
project for shareholders.
A significant portion of the preparation work to ensure a
successful admission of Katoro to AIM and the JSE has been
completed over the past two months, and we expect to complete this
process shortly. Active development of the Katoro project will
commence immediately thereafter and we expect production in early
2018. The combined resources of Kibo and LVG will significantly add
to our ability and capacity to achieve these timelines.
The consolidation of the Imweru and Imwelo gold projects adds
significant value to the Company's gold portfolio and provides
shareholders with an imminent opportunity to realize value from the
Company's gold assets"
Maps showing the location of the Imweru and Imwelo projects can
be found on the Kibo website www.kibomining.com under Projects/Lake
Victoria (gold).
Background Imweru and Imwelo Projects
Kibo's Imweru Gold Project and Lake Victoria's Imwelo Gold
Project are located in the gold prolific Lake Victoria Goldfield of
northern Tanzania, approximately 35 km west of AngloGold Ashanti's
world class Geita Mine (estimated pre-mining gold endowment of 23
Moz at 4g/t) and within a similar geological setting, prospective
for Archaean age "greenstone" hosted gold mineralisation.
Since acquiring the Imweru project in 2013, Kibo carried out
additional resource drilling in late 2013 leading to the
publication of a new Mineral Resource statement of 16,485,000
tonnes at 1.143 g/t (550,000 oz) in February 2104. Following
positive results from economic modelling, both in-house and by its
consultants, Kibo announced the commencement of a Definitive
Feasibility Study ("DFS") on the project in October 2014. Since
then it has completed a Preliminary Economic Assessment (Refer RNS
dated 9 Feb 2015) and commenced a Pre- Feasibility Study (Refer RNS
dated 8 April 2015) which together will comprise the first stage of
the DFS. The positive results from these studies to date have
established the potential economic viability of Imweru to sustain a
mine development over 7-10 years, potential to expand the
current
Mineral Resource and hence the Life of Mine for another 6 years
and the potential for the discovery of additional satellite
resources within the greater Imweru project block.
Lake Victoria Gold's Imwelo gold project is located along strike
and contiguous with Kibo's Imweru project. Imwelo effectively forms
an extension of Kibo's Imweru East Mineralised Zone (Refer RNS of
24 February 2014) and has a published JORC Mineral Resource of
205,200 oz. at a grade of 2.3 g/t of which 90,800 oz. is in the
Measured and Indicated Categories. Lake Victoria were granted a
Mining Licence over the project licence in January 2015 which
should enable mine development to progress rapidly. Taken together,
Kibo's Imweru and Lake Victoria's Imwelo mineral resource represent
an amalgamated resource of approximately 755,200 oz.
The proposed amalgamation of the two projects will provide
significant synergies for the development of a gold mine both in
regard to the enlarged resource and exploration potential of the
combined projects and the particular competencies of Kibo and Lake
Victoria in exploration and mine development respectively. The
enlarged project is also expected to present an attractive
investment opportunity in a period of renewed interest in the gold
sector. Given the current development status of the respective
projects, it is the intention of the project sponsors to have the
project in production, with a production target of 100,000 ounces
per annum, within 24 to 30 months from the date of formal
amalgamation.
Contacts
+27 (0) 83 2606126 Kibo Mining Chief Executive Officer
Louis Coetzee plc
--------------------- ---------------------- --------------------------- ---------------------------------
Corporate Adviser and
Andreas Lianos +27 (0) 83 4408365 River Group Designated Adviser on
JSE
--------------------- ---------------------- --------------------------- ---------------------------------
Beaufort Securities
Jon Belliss +44 (0) 207 382 Limited Broker
8300
--------------------- ---------------------- --------------------------- ---------------------------------
RFC Ambrian
Oliver Morse +61 8 9480 2500 Limited Nominated Adviser on
AIM
--------------------- ---------------------- --------------------------- ---------------------------------
+44 (0) 203 772
Daniel Thöle 2500 Bell Pottinger Investor and Media Relations
/ Anna Legge
--------------------- ---------------------- --------------------------- ---------------------------------
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
Standard Bank as Financial Advisor. Kibo is undertaking a Coal
Mining Definitive Feasibility Study and a Power Pre-Feasibility
Study for the Mbeya project with an integrated Bankable Feasibility
Study report for the MCPP to be released in the near term. On 20th
April 2015, Kibo signed a Joint Development Agreement for the
completion of the Definitive Feasibility Studies and development of
the MCPP with China based EPC contractor SEPCO III.
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
Imweru Mineral Resource
Table 1 below presents a table showing the Mineral Resource
estimate for the Imweru Project at a base case economic cut-off
grade for the reporting of the resource of 0.4 g/t. The table is
taken from a JORC- Compliant Report by Tetra Tech EBA dated
February 2014.
Table 1
Cut- Gold
Area Material Classification off Specific Metric Short Tons Grade Contained
Type (g/t) Gravity Tonnes (g/t) Gold Ounces
(t) (troy)
======== ============= ================== ======== ============= ============ ============== ======== ===============
Laterite Indicated 0.40 2.50 131,000 144,000 1.785 8,000
============= =========================== ======== ============= ============ ============== ======== ===============
Saprolite Indicated 0.40 2.50 706,000 778,000 1.387 32,000
============= =========================== ======== ============= ============ ============== ======== ===============
Bedrock Indicated 0.40 2.89 1,895,000 2,089,000 1.043 64,000
============= =========================== ======== ============= ============ ============== ======== ===============
Central Total Indicated 0.40 2.77 2,732,000 3,012,000 1.168 103,000
======== ============= ================== ======== ============= ============ ============== ======== ===============
Laterite Inferred 0.40 2.50 685,000 755,000 1.317 29,000
============= =========================== ======== ============= ============ ============== ======== ===============
Saprolite Inferred 0.40 2.50 1,047,000 1,154,000 1.040 35,000
============= =========================== ======== ============= ============ ============== ======== ===============
Bedrock Inferred 0.40 2.89 7,838,000 8,640,000 1.029 259,000
============= =========================== ======== ============= ============ ============== ======== ===============
Central Total Inferred 0.40 2.82 9,569,000 10,548,000 1.051 323,000
======== ============= ================== ======== ============= ============ ============== ======== ===============
East Total Inferred 0.40 2.70 2,653,000 2,925,000 1.449 124,000
======== ============= ================== ======== ============= ============ ============== ======== ===============
Indicated 0.4 2.77 2,732,000 3,012,000 1.168 103,000
========================================= ======== ============= ============ ============== ======== ===============
Inferred 0.4 2.79 12,222,000 13,473,000 1.137 447,000
========================================= ======== ============= ============ ============== ======== ===============
Imweru Property Combined
Total (inf+ind) 0.4 2.79 14,954,000 16,485,000 1.143 550,000
======================= ================== ======== ============= ============ ============== ======== ===============
* Kibo holds 100% of the Imweru Mineral Resource subject to a 2%
NSR held by Acacia Mining Limited
* Total estimates are rounded, based on composites capped at 26
g/t gold at Imweru Central and 25 g/t at Imweru East, the cut-off
grade is based on a gold price of US$1,200 and a 90% metallurgical
recovery is assumed in calculation of cut-off grade. A base case of
0.40 g/t has been selected.
** Classification of Mineral Resources incorporates the terms
and definitions from the Australian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves (JORC Code)
published by the Joint Ore Reserve Committee (JORC)
Review by Qualified Persons
Information in this announcement that relates to the Imweru
Mineral Resource is taken from the report titled "Resource Update
for the Imweru Property Geita Region Northern, Tanzania, JORC
Competent Persons Report" dated February 17th 2014 (the "Report").
The Report states a JORC-compliant Mineral Resource estimate and
was prepared for Kibo Mining plc by James Barr P.Geo. and Darryn
Hitchcock P.Geo. Senior Geologist and Geologist respectively with
TetraTech EBA Ltd. Both Mr. Barr and Mr. Hitchcock are registered
as Certified Professional Geologists with Association of
Professional Engineers and Geoscientists of British Columbia a
recognised professional organisation. Mr Barr as principal author
responsible for the Report has experience in the evaluation and
reporting of Archaean Gold projects and is a "Qualified Person" for
reporting gold resources to the JORC Standard. He consents to the
inclusion in this document of the matters based on his information
in the form and context in which they appear.
The information in this report that relates to exploration
results, mineral resources or ore reserves is based on information
reviewed by Noel O'Keeffe, PGeo., who is a Member of the Institute
of Geologists of Ireland. Mr. O'Keeffe is the Technical Director of
Kibo, and has at least five years' experience within the sector
which is relevant to the style of mineralisation and type of
deposit under consideration and to the activity which he is
undertaking to qualify as a qualified person. Specifically, Mr.
O'Keeffe, has reviewed the Competent Person's Report on which the
Imwelo Mineral Resource Estimate has been based ("Lake Victoria
Gold Ltd- Geology Report, Imwelo Project Tanzania"- Measure Group
(Pty) Ltd dated February 2015) and is satisfied that it is
compliant with the JORC Code, 2012 edition. Mr.O'Keeffe has also
reviewed the Competent Person's Report on which the Imweru Mineral
Resource Estimate is based ("Resource Update for the Imweru
Property Geita Region Northern, Tanzania, JORC Competent Persons
Report"- TetraTech EBA Ltd dated February 17th 2014) and is
satisfied that it is also compliant with the JORC Code, 2012
edition.
Johannesburg
10 August 2016
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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