TIDMKIBO
RNS Number : 2963E
Kibo Mining Plc
05 May 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")
05 May 2017
Update on Opera Reverse Take Over Transaction
Kibo Mining plc ("Kibo Mining") (AIM: KIBO; AltX: KBO), the
Tanzania focused mineral exploration and development company, would
like to draw shareholders' attention to the announcement released
by Opera Investments plc ("Opera") at 8am today regarding the
proposed transaction by Opera to acquire the Imweru and Lubando
Gold Projects (the "Assets") from Kibo Mining ("the Proposed
Transaction"). Opera has conditionally agreed to acquire Kibo Gold
Limited ("Kibo Gold"), through which the Imweru and Lubando gold
projects in Tanzania are held, from Kibo Mining for a total
consideration of GBP3.66 million (the "Acquisition").
The Acquisition constitutes a reverse takeover of Opera for the
purposes of the Listing Rules, and subject to Opera Shareholder
approval of the necessary resolutions at the General Meeting,
cancellation of Opera's admission to the Standard Segment of the
Official List and to trading on the Main Market will take place at
8.00 a.m. on 23 May 2017, at which point admission to trading on
AIM will occur under the new company name of Katoro Gold plc
("Katoro") and new ticker symbol "KAT".
The consideration for the Acquisition will be satisfied by the
allotment and issue of 61,000,000 new ordinary shares in Opera
("Ordinary Shares") ("Consideration Shares") to Kibo Mining at a
price of 6 pence per Consideration Share.
Opera has also conditionally raised gross proceeds of GBP1.5
million, through the issue of 25,000,000 new Ordinary Shares
("Placing Shares") at 6 pence per Placing Share (the "Placing").
Kibo Mining is to subscribe for 833,333 Placing shares at a cost of
GBP50,000, to be funded from existing cash reserves.
Kibo Gold reported an operating loss of GBP62,420 for the year
ended 31 December 2016, it has a carrying value of GBP1.7 million
in the Kibo Mining accounts, and as required by IFRS, it will not
be unconsolidated from the accounts of Kibo Mining. There will be
no change to either the board or capital of Kibo Mining as a result
of the transaction, and Kibo Mining remains focused on developing
its Mbeya Coal to Power Project.
Kibo Gold holds, through its wholly owned subsidiaries,
interests in two gold Mineral Resource projects, as well as a large
acreage of earlier stage gold exploration prospects within the
Licence Portfolios and, potentially, the Option Portfolios within
the greater Lake Victoria Goldfields in northern Tanzania.
The gold projects principally comprise the Imweru and Lubando
Projects, which both have Mineral Resources established in
accordance with the JORC (2012) Code with an accompanying
Code-compliant Competent Person's Report. The total Mineral
Resources stated for Imweru consist of 11.607 Mt at grade of 1.38
g/t for a Mineral Resource of 515,110 oz Au (Source: Imweru CPR
Executive Summary, Derived from Table "Combined Imweru Mineral
Resources Declared as at 10 March 2017") at a Resource pay limit of
0.4 g/t for the open pittable material and 1.3 g/t for the
underground material (Source: Imweru CPR Executive Summary,
"Mineral Resources"), while the Lubando Mineral Resources equate to
6.78 Mt at grade of 1.10 g/t for 239,870 oz Au (Source: Lubando CPR
Executive Summary, Table "Lubando Project Mineral Resources as at
10 March 2017") at a pay limit of 0.4 g/t to a depth of 200 m and
1.3 g/t below the 200 m depth cut-off (Source: Lubando CPR
Executive Summary, "Mineral Resources"). The respective projects
also include the earlier stage Sheba (within the Imweru Licence
Portfolio and Imweru Option Portfolio), Pamba and Busolwa (both
within the Lubando Licence Portfolio and Lubando Option Portfolio)
projects.
Katoro's primary focus will be on advancing and developing
Imweru through a work programme which will include, inter alia, a
feasibility study and a drilling programme, with the aim to
commence production with an initial target of 50,000 oz gold per
annum within 18-24 months, subject to further funding, following
Admission.
In addition to Imweru and Lubando, the Opera will also acquire a
number of other Prospecting Licences within the wider Imweru and
Lubando Licence Portfolios (with additional Prospecting Licences
potentially becoming available under the Option Portfolios).
Kibo Mining will retain initial responsibility, at its cost, for
each of the Applications comprising the Imweru Option Portfolio and
the Lubando Option Portfolio and will use its reasonable endeavours
to ensure that an Offer is made in respect thereof. Kibo Mining
will notify Katoro of an Offer made in respect of any Application,
and Katoro may elect to confirm acceptance of such Offer (in which
event Katoro will be responsible for the payment of all relevant
fees from that date), or to reject such Offer (in which event Kibo
Mining will allow the Offer to lapse). Where Katoro has elected to
accept an Offer and the resulting Prospecting Licence would be
issued to a member of the Kibo Mining Group (as the applicant of
record), Kibo Mining will procure the transfer of the PL, when
issued, to Katoro at the cost of Katoro.
Similarly, Kibo Mining will retain responsibility, at its cost,
for the Retained Licence and will use its reasonable endeavours to
resolve the administrative issues with the licensing authorities,
further details on which are set out in paragraph 3(c) of Part V of
the Admission Document. Should the Retained Licence be confirmed in
good standing, all future costs associated with this Prospecting
Licence would be for the account of Katoro.
Additionally, Kibo Mining has agreed to procure the transfer to
Katoro of the Protocol Licences at the cost of Katoro.
The directors of Katoro and Kibo Mining will be subject to a
one-year lock up (pursuant to AIM Rule 7) and a further one-year
orderly market agreement in respect of the Ordinary Shares that
each holds or is interested in pursuant to the Lock-Up Agreements
that each have entered into with the Company, Strand Hanson Limited
and Beaufort Securities Limited. Accordingly Kibo Mining's
intentions are to hold its interest in Katoro for a minimum of one
year and regularly review its position with respect to its interest
in Katoro thereafter. Kibo Mining notes that Mr Louis Coetzee and
Mr Lukas Marthinus ("Tinus") Maree, both directors of Kibo Mining,
are proposed directors of Katoro and as such are subject to the
Lock-Up Agreement and and orderly market agreement above.
As noted above, Mr Louis Coetzee and Mr Tinus Maree are both
directors of Kibo Mining and to be directors of Katoro upon its
Admission to trading on AIM, and consequently the Proposed
Transaction is considered to be a Related Party Transaction under
AIM Rule 13.
With the exception of Mr Coetzee and Mr Maree, who through their
position as both a director of Kibo Mining and a proposed director
of Katoro, are involved in the Proposed Transaction as a related
party, Kibo Mining's directors consider, having consulted with its
nominated adviser, that the terms of the transaction are fair and
reasonable insofar as its shareholders are concerned.
The full announcement released by Opera is reproduced below:
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN
PART, DIRECTLY OR INDIRECTLY, WITHIN, INTO OR FROM ANY JURISDICTION
WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR
REGULATIONS OF THAT JURISDICTION
5 May 2017
Opera Investments plc
Acquisition of Kibo Gold Limited from Kibo Mining plc
Cancellation of admission to the Standard Segment of the
Official List and of trading on the Main Market of the London Stock
Exchange
Issue of 91,033,332 New Ordinary Shares in connection with the
proposed Placing, Acquisition and issue of Fee Shares
Waiver of Rule 9 of the City Code
Adoption of the New Articles
Change of name to Katoro Gold PLC
Admission to trading on AIM of the Enlarged Group
and
Notice of General Meeting
Further to the announcements made by Opera Investments plc
("Opera" or the "Company") on 23 September 2016, 2 December 2016, 2
March 2017 and 11 April 2017, Opera is pleased to announce that it
has conditionally agreed to acquire Kibo Gold Limited ("Kibo Gold")
from Kibo Mining plc ("Kibo Mining").
HIGHLIGHTS
-- Opera to acquire Kibo Gold, a wholly owned indirect
subsidiary of Kibo Mining, through which the Imweru and Lubando
gold projects in Tanzania are held, for a total consideration of
GBP3.66 million (the "Acquisition").
-- Total JORC (2012) Code compliant mineral resource of 754,980
oz Au, split 515,110 oz Au at Imweru and 239,870 oz Au at
Lubando.
-- The consideration for the Acquisition will be satisfied by
the allotment and issue of 61,000,000 new ordinary shares in the
Company ("Ordinary Shares") ("Consideration Shares") to Kibo Mining
at a price of 6 pence per Consideration Share.
-- Opera has also conditionally raised gross proceeds of GBP1.5
million, through the issue of 25,000,000 new Ordinary Shares
("Placing Shares") at 6 pence per Placing Share (the
"Placing").
- Together with Opera's existing cash resources of GBP0.486
million, the net proceeds of the Placing will be used to fund the
development of the Imweru project, including a feasibility study
and a drilling programme, and to provide general working capital to
the Enlarged Group.
- Subject to further funding, the Enlarged Group intends to
commence production at Imweru with an initial target of 50,000 oz
gold per annum within 18-24 months following Admission.
-- The Acquisition constitutes a reverse takeover for the
purposes of the Listing Rules and subject to Shareholder approval
of the necessary resolutions at the General Meeting, cancellation
of the admission to the Standard Segment of the Official List and
to trading on the Main Market will take place at 8.00 a.m. on 23
May 2017, at which point admission to trading on AIM will occur
under the new company name of Katoro Gold PLC and new ticker symbol
"KAT". Trading in the Ordinary Shares will remain suspended until
such time.
-- In aggregate, 91,033,332 new Ordinary Shares are being issued
and on Admission, the Company will have 108,283,332 Ordinary Shares
in issue, which at 6 pence per Ordinary Share, implies a market
capitalisation on Admission of approximately GBP6.5 million.
- The above figure includes 5,033,332 new Ordinary Shares which
are being issued to certain advisers in connection with the
transaction ("Fee Shares").
- As a result of the issue of the Consideration Shares and Kibo
Mining's participation in the Placing, Kibo Mining will be a 57.1
per cent. shareholder in the Enlarged Group on Admission.
-- Board of the Enlarged Group to consist of Louis Coetzee as
Executive Chairman, and Myles Campion, Paul Dudley and Tinus Maree
as Non-Executive Directors.
-- Completion of, inter alia, the Acquisition and Placing are
inter-conditional and conditional on, inter alia:
a) Shareholders approving all Resolutions, including the Rule 9 Waiver; and
b) Admission taking place.
-- A general meeting of the Company ("General Meeting") is to be
held at the offices of Fladgate LLP, 16 Great Queen St, London WC2B
5DG at 10.00 a.m. on 22 May 2017 for the purpose of seeking
approval of the Resolutions. A Notice of General Meeting, along
with an AIM admission document dated 5 May 2017 and the necessary
form of proxy, will today be posted to Shareholders.
-- Strand Hanson Limited is acting as Nominated and Financial
Adviser, and Beaufort Securities Limited is acting as Broker to the
Company.
Paul Dudley, Non-Executive Chairman of the Company,
commented:
"The completion of the proposed transaction will be
transformational for Opera and we are pleased, subject to
Shareholder approval, to have finalised the AIM admission process.
We look forward to progressing operational developments as quickly
as possible following Admission as Katoro Gold PLC."
Louis Coetzee, Chief Executive Officer of Kibo Mining,
commented:
"We are pleased to have raised the necessary funding to advance
the Imweru project and are looking forward to commencing the
feasibility study and drilling following Admission."
Enquiries
+44 (0) 20 3551
Opera Investments plc 4872
Paul Dudley / Myles Campion
Strand Hanson Limited (Nominated +44 (0) 20 7409
& Financial Adviser) 3494
Richard Tulloch / Ritchie Balmer
/ Frederick Twist
+44 (0) 20 7382
Beaufort Securities Limited (Broker) 8300
Jon Belliss
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014.
Information extracted from Part I ("Letter from the Chairman of
the Company") and Part III ("Information on the Board &
Corporate Governance") of the Admission Document is set out below.
A copy of the Admission Document will shortly be available on the
Company's website: www.operainvestmentsplc.com (which will be
changed to www.katorogold.com following Admission).
Capitalised terms used in this announcement carry the same
meaning as those ascribed to them in the Admission Document, unless
the context requires otherwise.
Background to the Acquisition and summary information on Kibo
Gold and the Enlarged Group structure on Admission
Opera was incorporated on 11 November 2014 with an initial share
capital of GBP52,500 and raised GBP1,200,000 before transaction
expenses through a fundraising at a placing price of 10 pence per
share in conjunction with its initial admission to the Standard
Segment and to trading on the Main Market in April 2015, in order
to finance the identification and acquisition of a natural
resources company, business, project or asset that it would develop
and grow, with any such acquisition expected to be deemed a reverse
takeover.
The Existing Directors, who are responsible for Opera's
objectives and business strategy including the approval of the
Acquisition, have considerable experience in identifying and
assessing acquisition targets and in executing such transactions.
Before entering a period of exclusivity in connection with the
Acquisition, Opera reviewed a number of acquisition
opportunities.
The Existing Directors have examined prospective acquisition
opportunities on the basis of the Company's stated investment
criteria which is that any acquisition:
(a) has a management team possessing a strong track record of
generating growth for shareholders and a proven business
record;
(b) has strong commercial prospects;
(c) is exposed to fast developing countries, but within a low sovereign risk environment;
(d) offers the potential for near-term financial and development success; and
(e) can be adequately funded to be able to deliver on credible
milestones and provide a significant growth opportunity for
Shareholders.
The Existing Directors believe that the Acquisition fulfils the
criteria set out at the time of Opera's listing and that the
Proposals, if approved, will enable the Company to deliver value to
Shareholders over the medium term through the development of the
Imweru Project.
In the event that the Resolutions are not approved by the
Existing Shareholders, Opera will seek an alternative acquisition
target that meets the key criteria of its investment strategy with
the funds then remaining to it. The prospects of Opera would remain
dependent on implementing such an acquisition.
Summary information on Kibo Gold, the Imweru and Lubando
Projects, the Licence Portfolios and the Option Portfolios
Pursuant to the Sale and Purchase Agreement, the Company is
proposing to acquire the entire issued share capital of Kibo Gold,
a Cypriot holding company, that has, through its wholly owned
subsidiaries, interests in two gold Mineral Resource projects, as
well as a large acreage of earlier stage gold exploration prospects
within the Licence Portfolios and, potentially, the Option
Portfolios within the greater Lake Victoria Goldfields in northern
Tanzania.
The gold projects principally comprise the Imweru and Lubando
Projects, which both have Mineral Resources established in
accordance with the JORC (2012) Code with an accompanying
Code-compliant Competent Person's Report. The total Mineral
Resources stated for Imweru consist of 11.607 Mt at grade of 1.38
g/t for a Mineral Resource of 515,110 oz Au (Source: Imweru CPR
Executive Summary, Derived from Table "Combined Imweru Mineral
Resources Declared as at 10 March 2017") at a resource pay limit of
0.4 g/t for the open pittable material and 1.3 g/t for the
underground material (Source: Imweru CPR Executive Summary,
"Mineral Resources"), while the Lubando Mineral Resources equate to
6.78 Mt at grade of 1.10 g/t for 239,870 oz Au (Source: Lubando CPR
Executive Summary, Table "Lubando Project Mineral Resources as at
10 March 2017") at a pay limit of 0.4 g/t to a depth of 200 m and
1.3 g/t below the 200 m depth cut-off (Source: Lubando CPR
Executive Summary, "Mineral Resources"). The respective projects
also include the earlier stage Sheba (within the Imweru Licence
Portfolio and Imweru Option Portfolio), Pamba and Busolwa (both
within the Lubando Licence Portfolio and Lubando Option Portfolio)
projects.
The Enlarged Group's primary focus will be on advancing and
developing Imweru through a work programme which will include,
inter alia, a feasibility study and a drilling programme, with the
aim to commence production with an initial target of 50,000 oz gold
per annum within 18-24 months, subject to further funding,
following Admission. Further details on the development strategy
for Imweru is set out in paragraph 3 of Part II of the Admission
Document.
In addition to Imweru and Lubando, the Company will also acquire
a number of other Prospecting Licences within the wider Imweru and
Lubando Licence Portfolios (with additional Prospecting Licences
potentially becoming available under the Option Portfolios) and,
whilst these are not critical to the development of a mine at
Imweru, the Directors believe they provide potential exploration
upside as part of the longer-term strategy of the Enlarged
Group.
Kibo Mining will retain initial responsibility, at its cost, for
each of the Applications comprising the Imweru Option Portfolio and
the Lubando Option Portfolio and will use its reasonable endeavours
to ensure that an Offer is made in respect thereof. Kibo Mining
will notify the Enlarged Group of an Offer made in respect of any
Application, and the Enlarged Group may elect to confirm acceptance
of such Offer (in which event the Enlarged Group will be
responsible for the payment of all relevant fees from that date),
or to reject such Offer (in which event Kibo Mining will allow the
Offer to lapse). Where the Enlarged Group has elected to accept an
Offer and the resulting Prospecting Licence would be issued to a
member of the Kibo Mining Group (as the applicant of record), Kibo
Mining will procure the transfer of the PL, when issued, to the
Enlarged Group at the cost of the Enlarged Group. Further details
on the licencing regime in Tanzania are set out in Part IV of the
Admission Document.
Similarly, Kibo Mining will retain responsibility, at its cost,
for the Retained Licence and will use its reasonable endeavours to
resolve the administrative issues with the licensing authorities,
further details on which are set out in paragraph 3(c) of Part V of
the Admission Document. Should the Retained Licence be confirmed in
good standing, all future costs associated with this Prospecting
Licence would be for the account of the Enlarged Group.
Additionally, Kibo Mining has agreed to procure the transfer to
the Enlarged Group of the Protocol Licences at the cost of the
Enlarged Group.
Further information on Kibo Gold, Imweru, Lubando (including a
more detailed explanation on the geology, Mineral Resource bases
and future work programmes for the projects), the Licence
Portfolios and the Option Portfolios is set out in Part II of the
Admission Document and Part VII: Part A and Part B of the Admission
Document set out the Minxcon Competent Person's Reports on Imweru
and Lubando, respectively. Further information on the Sale and
Purchase Agreement is disclosed in paragraph 9 of Part I and in
paragraph 14.1(c) of Part XI of the Admission Document.
Figure 1 below shows the location of the Imweru and Lubando
Projects, in which the Enlarged Group will have a 100 per cent.
interest. Figure 2 shows the Licence Portfolios and Option
Portfolios and Figure 3 shows a summation of the Mineral Resources
for the Imweru and Lubando Projects as estimated by Minxcon in
accordance with the guidelines as embodied by the JORC (2012) Code.
JORC (2012) Code Compliant CPRs have been generated for each of the
Projects.
Figure 1: Location of the Imweru Project and the Lubando
Project
http://www.rns-pdf.londonstockexchange.com/rns/2963E_-2017-5-5.pdf
Source: Company materials, extracted from Imweru CPR, Executive
Summary section, "Location of the Project"
Figure 2: The Licence Portfolios and Option Portfolios
http://www.rns-pdf.londonstockexchange.com/rns/2963E_1-2017-5-5.pdf
Source: Company materials
Figure 3: A Summary of the Mineral Resources for the Imweru and
Lubando Projects as estimated by Minxcon effective as at 10 March
2017
Measured Indicated Inferred Total
------------------------ ---------- ---------- --------- --------
Imweru
------------------------ ---------- ---------- --------- --------
Tonnes (millions) - 2.367 9.240 11.607
------------------------ ---------- ---------- --------- --------
Grade (g/t) - 1.19 1.43 1.38
------------------------ ---------- ---------- --------- --------
Contained Ounces (Oz) - 90,800 424,310 515,110
------------------------ ---------- ---------- --------- --------
Lubando
------------------------ ---------- ---------- --------- --------
Tonnes (millions) - - 6.78 6.78
------------------------ ---------- ---------- --------- --------
Grade (g/t) - - 1.10 1.10
------------------------ ---------- ---------- --------- --------
Contained Ounces (Oz) - - 239,870 239,870
------------------------ ---------- ---------- --------- --------
Total Contained Ounces
(Oz) - 90,800 664,180 754,980
------------------------ ---------- ---------- --------- --------
Source: Imweru CPR and Lubando CPR, the respective Executive
Summary sections. Derived from Tables "Combined Imweru Mineral
Resources Declared as at 10 March 2017" and "Lubando Project
Mineral Resources as at 10 March 2017"
Figure 4: Enlarged Group structure on Admission
http://www.rns-pdf.londonstockexchange.com/rns/2963E_2-2017-5-5.pdf
Source: Company materials
Enlarged Group structure
On Completion, Kibo Gold will become a wholly owned subsidiary
of the Company and the Enlarged Group will seek to advance the
Projects, initially concentrating on the Imweru Project, as
detailed in Part II of the Admission Document.
All Applications and Prospecting Licences held by Kibo Gold are
held through Reef Miners, with Savannah Mining currently being a
non-trading subsidiary which previously held various licences that
have now either expired or been relinquished.
Kibo Gold's primary purpose is that of a holding company for
Reef Miners and Savannah Mining. Reef Miners' primary purpose is to
hold (or to acquire) the Prospecting Licences comprising the Imweru
and Lubando Licence Portfolios (which include the Imweru and
Lubando Projects) and, in due course, hold or acquire Prospecting
Licences arising from the Imweru or Lubando Option Portfolios.
Further information on the Imweru and Lubando Projects, including,
inter alia, the work undertaken to date and future work programme
on both projects, the Licence Portfolios and the Option Portfolios
is disclosed in Part II and Part VII of the Admission Document.
Further information on the board and governance of the Enlarged
Group is set out in Part III of the Admission Document.
Strategy for the Enlarged Group
Imweru
The Enlarged Group's primary focus will be on advancing and
developing the Imweru Project. Accordingly, the majority of the
Enlarged Group's cash resources (after the expenses associated with
the Proposals), will be used to advance Imweru through undertaking
a work programme consisting of the completion of a Pre-Feasibility
Study ("PFS"), a drilling programme to prove up the Mineral
Resource base, feasibility study and Mining Licence application.
Please refer to paragraph 3 of Part II of the Admission Document
for further information on the future development strategy for
Imweru.
Should the results of the proposed work programme prove
positive, the Directors' medium-term strategy is to fast-track a
mine development decision and, subject to securing the requisite
funding, to commence initial production at Imweru with a target of
50,000 oz gold per annum within 18-24 months following
Admission.
Subject to securing additional funding and contingent on
resource expansion, the Directors' longer term strategy for Imweru
is to seek to increase production to 100,000 oz gold per annum and
develop a Mineral Resource base in excess of 1 Moz gold.
Lubando and Exploration Potential
The Directors believe the Imweru Licence Portfolio also includes
promising gold-in-soil drill targets (the Sheba project) along
strike and within the same geological setting as the Imweru
Project. Although still high risk, these drill targets potentially
provide an opportunity to delineate additional gold mineral
resources close to Imweru. Should future drilling of these targets
prove successful, they could contribute to meeting the Enlarged
Group's objective of increasing Imweru's production to 100,000 oz
gold per annum and defining a total Mineral Resource figure of
greater than 1 Moz gold at Imweru. Additional funding would need to
be raised by the Enlarged Group to undertake drilling of these
targets.
Subject to additional funding, Lubando will also form part of
the Enlarged Group's longer-term strategy to potentially
significantly increase its gold production in the region in the
event the Imweru Project is brought into operation. The Directors
believe exploration potential also exists within the greater
Lubando Licence Portfolio and Lubando Option Portfolio (which
include the Pamba and Busolwa projects) and, at the appropriate
time, these projects will be assessed. Subject to the availability
of additional funding, exploration programmes may also be
implemented on the Lubando Licence Portfolio as part of the
Enlarged Group's wider longer-term strategy.
The Company will also consider appropriate value enhancing
transactions, as appropriate, as they present themselves following
Admission.
Current trading, financial information and prospects
Following the Initial Admission, the Existing Directors began to
execute the business strategy of the Company and commenced the
investigation into, and analysis of, a number of potential
investment opportunities.
Each potential investment was analysed in light of the Company's
investment strategy as referred to in "Background to the
Acquisition and Group Structure on Admission" above. On 23
September 2016, the Company announced that it had agreed heads of
terms with Kibo Mining to acquire the Imweru and Lubando gold
projects. As the Acquisition is classified as a reverse takeover,
trading in the Existing Ordinary Shares was suspended immediately
following such announcement in accordance with the Listing
Rules.
In the Admission Document, Part VIII: Part B contains audited
historical financial information for the period since incorporation
on 11 November 2014 to 31 December 2016 for the Company. Part IX:
Part B contains audited consolidated historical financial
information for the Kibo Gold Group for the financial years ended
31 December 2016, 31 December 2015 and 31 December 2014.
Since the end of December 2016, Opera has traded in line with
the Existing Directors' expectations and the Kibo Gold Group has
traded in line with management expectations respectively, with both
groups having sought to conserve their cash resources as far as
possible. As at the Latest Practicable Date, Opera had cash
resources of GBP0.486 million.
The Directors are confident that, following Admission, the funds
raised pursuant to the Placing will enable the Enlarged Group to
seek to advance the Imweru Project. In this regard, in order to
maximise the investment in advancing the Imweru Project, for the
benefit of all stakeholders, the Directors have agreed that salary
or fees, as applicable, will only commence with effect from the
date falling 18 months after Admission or earlier in the event a
fundraise is undertaken.
Directors and Proposed Directors
The names, business experience and principal business activities
outside the Company of the Existing Directors and Proposed
Directors are set out below:
Louis Lodewyk Coetzee, Proposed Executive Chairman, aged 52
Louis Coetzee has 25 years' experience in business development,
promotion and financing in both the public and private sector. Over
the past 15 years, he has concentrated on the exploration and
mining area where he has founded, promoted and developed a number
of junior mineral exploration companies based mainly on Tanzanian
assets. Louis has tertiary qualifications in law and languages,
project management, supply chain management and a MBA from Bond
University (Australia) specialising in entrepreneurship and
business planning and strategy.
He has worked in various project management and business
development roles mostly in the mining industry throughout his
career. Between 2007 and 2009, Louis held the position of
Vice-President, Business Development with Canadian listed Great
Basin Gold (TSX: GBG). Between 2008 and 2011, Louis also held the
position of Chairman of Australian-listed resources company, East
Africa Resources Limited.
Louis is the current Chief Executive Officer of Kibo Mining plc,
which following Admission will be interested in 57.1 per cent. of
the Enlarged Share Capital.
Myles Campion, Non-Executive Director, aged 48
Mr Campion has a comprehensive background in all technical and
financial facets of the resources sector, specialising
internationally in resource evaluation and project assessment. This
follows a 10-year career as an exploration and mine site geologist
in Australia covering base metals and gold. He holds a BSc (Hons)
in Geology from University of Wales College, Cardiff and an MSc
(MinEx) from the Royal School of Mines in London, and also holds a
Graduate Diploma of Business (Finance).
Mr Campion's financial experience ranges from Australian and UK
equities research through to project and debt financing in London,
covering the entire spectrum of mining companies with an extensive
knowledge of the global resources market covering the three main
bourses, the Toronto Stock Exchange, AIM and the ASX. This
knowledge was applied effectively as a Fund Manager at Oceanic
Asset Management, where he successfully managed the Australian
Natural Resources Fund, an Open Ended Investment Company (OEIC)
traded in London, steering the fund to an outperforming 50 per
cent. return over five years.
Paul Dudley, Non-Executive Director, aged 45
Mr Dudley is a Fellow of the Chartered Institute of Accountants
of England and Wales and is a Member of the UK's Chartered
Institute of Securities and Investment. He is a founding director
of HD Capital Partners Ltd, an independent corporate broking and
advisory firm specialising in providing professional advisory
services to growth sector companies. HD Capital Partners Ltd is
regulated by the Financial Conduct Authority and is a Member Firm
of the London Stock Exchange.
Before founding HD Capital, Mr Dudley was instrumental in
growing the corporate finance business of stockbrokers WH Ireland
Limited in London, where he acted as the lead corporate finance
adviser on a number of flotations as well as executing numerous
fund raisings and providing advice on takeovers and other
transactions in the private and public arena, most notably within
the natural resources sector.
Earlier in his career, Mr Dudley was seconded to the listing
department of the London Stock Exchange and he also worked at Sigma
Capital plc, a venture capital investment firm, where he advised on
investment into emerging growth companies.
Lukas Marthinus ("Tinus") Maree, Proposed Non-Executive
Director, aged 55
Mr Maree is a lawyer by profession. He has served on the boards
of a number of public companies including Goldsource Mines Limited,
Africo Resources Limited and Diamondworks Limited that have made
significant successful investments in exploration projects in
Africa and North America, and has more recently served as the CEO
of private investment companies Rusaf Gold Limited and Mzuri
Capital Group Limited, both of which have successfully developed
and sold mineral projects in Russia and Tanzania in the last seven
years.
He was also a founder principal of River Group, Designated
Advisors to the Listing of Kibo on the JSE, and was responsible for
its Canadian office until his retirement from the group in 2013 to
pursue personal interests.
Tinus is a current Non-Executive Director of Kibo Mining plc,
which following Admission will be interested in 57.1 per cent. of
the Enlarged Share Capital.
The Directors will monitor the composition of the Board on an
ongoing basis and appoint further executive and/or non-executive
directors as appropriate.
Financial impact of the Acquisition and the Placing and the use
of proceeds
As at 31 December 2016, the net assets of Opera were GBP580,020,
including total assets of GBP713,305. The net proceeds of the
Placing are expected to be GBP1,094,000. The unaudited pro forma
statement of net assets of the Enlarged Group, which is set out in
Part X of the Admission Document, are GBP1,584,204, taking into
account the impact of the Acquisition and the Placing as though
they had been completed as at 31 December 2016.
The Placing will raise gross proceeds of GBP1,500,000, which, in
addition to Opera's existing cash resources of GBP0.486 million as
at the Latest Practicable Date, will be used to fund the
development of Imweru, provide general working capital to the
Enlarged Group and to pay the outstanding expenses associated with
the Proposals. To date, Opera has paid expenses of GBP122,000
associated with the Proposals and a further approximate GBP406,000
in cash remains payable. Please see below for the expected use of
the Enlarged Group's cash resources and further information on the
development of Imweru is set out in paragraph 3 of Part II of the
Admission Document.
Figure 5: Expected use of proceeds of the Placing and Opera's
existing cash resources
Use GBP'000
Fund the development of Imweru (as set
out in paragraph 3 of Part II) 1,246
General working capital purposes of the
Enlarged Group 334
Further cash expenses associated with
the Proposals* 406
--------
Total 1,986
--------
*As at the Latest Practicable Date, Opera had paid expenses of
GBP122,000 associated with the Proposals. Source: Company
Materials.
The City Code and the whitewash procedure
The proposed Acquisition gives rise to certain considerations
under the City Code. Brief details of the Panel, the City Code and
the protections they afford are described below.
Under Rule 9 of the City Code, where any person acquires,
whether by a series of transactions over a period of time or not,
an interest in shares which (taken together with shares already
held by that person and interests in shares held or acquired by
persons acting in concert with him or her) carry 30 per cent. or
more of the voting rights of a company which is subject to the City
Code, such as Opera, that person is normally required to make a
general offer to all the holders of any class of equity share
capital or other class of transferable securities carrying voting
rights in that company to acquire their shares in the company.
Under Note 1 of the Notes on Dispensations from Rule 9 of the
City Code, when the issue of new securities in consideration for an
acquisition or a cash subscription would otherwise result in an
obligation to make a general offer under Rule 9 of the City Code,
the Panel will normally grant a waiver of that obligation if, inter
alia, the independent shareholders of the Company pass an ordinary
resolution on a poll at a general meeting approving the proposals
which would otherwise give rise to the obligation to make an offer
(the "Whitewash Procedure").
On Completion, Opera will allot and issue 61,000,000
Consideration Shares, and 833,333 Placing Shares to Kibo Mining,
equal, in aggregate, to approximately 57.1 per cent. of the
Enlarged Share Capital, in consideration for the transfer to Opera
of Kibo Mining's entire shareholding in Kibo Gold and the
subscription by Kibo Mining for the Kibo Placing Shares. As a
result, Kibo Mining will hold in excess of 30 per cent. of the
voting rights in Opera and will be deemed a Controlling Shareholder
of Opera. On Completion, Kibo Mining would ordinarily be obliged to
make a cash offer pursuant to Rule 9 of the City Code for the
remaining issued shares of Opera which Kibo Mining does not already
own as a result of Completion. Therefore, Kibo Mining and Opera
have sought a Rule 9 Waiver under the Whitewash Procedure. The
Panel has agreed to waive the obligation on Kibo Mining to make a
general offer that would otherwise arise under Rule 9 of the City
Code as a result of those Consideration Shares being issued to Kibo
Mining pursuant to the Acquisition and its participation in the
Placing, subject to the passing of the Whitewash Resolution by the
Independent Shareholders.
Pursuant to the City Code, a Kibo Appointee will, unless the
contrary is established with the Takeover Panel, on acquiring an
interest in the Ordinary Shares, be that through, inter alia, the
acquisition of Ordinary Shares or on the exercise of rights to
acquire Ordinary Shares, such as on the exercise of options granted
at a future date pursuant to the Share Option Plans, further
details of which are set out in paragraph 16 of Part I of the
Admission Document, be deemed to be acting in concert with Kibo
Mining.
Accordingly, for so long as Kibo Mining is interested in
Ordinary Shares carrying more than 50 per cent. of the Company's
voting share capital at the time a Kibo Appointee acquires an
interest in the Ordinary Shares, such acquisition will not incur an
obligation under Rule 9 to make a general offer for the
Company.
In addition, in the event that such acquisition of an interest
in the Ordinary Shares occurs as a result of the exercise of a
right to acquire Ordinary Shares by a Kibo Appointee, with such
right being acquired at a time when Kibo Mining was interested in
Ordinary Shares carrying more than 50 per cent. of the Company's
voting share capital, but such exercise occurs when Kibo Mining is
interested in Ordinary Shares carrying less than 50 per cent. of
the Company's voting share capital, such exercise would not incur
an obligation under Rule 9 to make a general offer for the
Company.
However, in the event Kibo Mining is interested in Ordinary
Shares carrying greater than 30 per cent. but less than 50 per
cent. of the Company's voting share capital at the time a Kibo
Appointee acquires an interest, such acquisition would incur an
obligation under Rule 9 to make a general offer for the Company,
other than in respect of the right to acquire an interest which had
been previously subject to a Whitewash Procedure.
As noted above, upon Admission, Kibo Mining will be interested
in Ordinary Shares representing more than 50 per cent. of the
Enlarged Share Capital. Accordingly, following Admission and for so
long as Kibo Mining is interested in Ordinary Shares carrying more
than 50 per cent. of the Company's voting share capital (for the
purposes of the City Code), it and persons deemed to be acting in
concert with Kibo Mining pursuant to the City Code (as long as such
persons do not individually acquire an interest in 30 per cent. or
more of the Company's voting share capital), may increase its and
their aggregate interest in the Company without incurring an
obligation under Rule 9 to make a general offer for the
Company.
Kibo Mining will therefore, subject to the provisions of the
Relationship Agreement, be able to block a special resolution of
the Company and be able to pass or defeat an ordinary resolution of
the Company. Further, assuming all Shareholders vote, Kibo Mining
would require Shareholders with an interest in, in aggregate, 17.9
per cent. of the Enlarged Share Capital to vote with it to be able
to pass a special resolution of the Company.
Further details are set out in Part VI of the Admission Document
"The City Code Whitewash Procedure and Information on Kibo
Mining".
Principal terms of the Placing
The Placees have conditionally agreed to subscribe for all of
the Placing Shares at the Issue Price, raising gross proceeds of
GBP1.5 million. On Admission, the Placing Shares will represent
approximately 23.1 per cent. of the Enlarged Share Capital. The
Placees are a mix of existing and new institutional and other
investors (including Kibo Mining).
The completion of the Placing is conditional, inter alia, upon
the conditions set out in paragraph 1 of Part I of the Admission
Document.
The New Ordinary Shares will be credited as fully paid and will
be free from all liens, equities, charges, encumbrances and other
interests. Each New Ordinary Share will rank pari passu in all
respects with each Existing Ordinary Share and will have the same
rights and restrictions as each Existing Ordinary Share including
the rights to all dividends and other distributions declared, made
or paid following Admission. There are no restrictions on the free
transferability in relation to the Ordinary Shares, other than the
Lock-Up Agreement described below in paragraph 15 of Part I of the
Admission Document, which will be effective from Admission.
The New Ordinary Shares will, when issued, be in registered form
and will be capable of being held in certificated and
uncertificated form. The Registrar is Capita Asset Services, PXS,
34 Beckenham Road, Beckenham, Kent BR3 4TU.
Title to the certificated New Ordinary Shares will be evidenced
by entry in the register of members of Opera (to be renamed Katoro
Gold PLC) and title to uncertificated New Ordinary Shares will be
evidenced by entry in the operator register maintained by Euroclear
(which forms part of the register of members of Opera (to be
renamed Katoro Gold PLC)). No share certificates will be issued in
respect of the New Ordinary Shares in uncertificated form. If any
such shares are converted to be held in certificated form, share
certificates will be issued in respect of those shares in
accordance with applicable legislation. The New Ordinary Shares
will be denominated in pounds sterling.
Sale and Purchase Agreement
On 5 May 2017, the Board announced that Opera, Kibo Cyprus and
Kibo Mining had entered into the Sale and Purchase Agreement
pursuant to which Opera will acquire the Kibo Gold Shares and the
Loan for a total consideration of GBP3.66 million. The
consideration for the Acquisition will be satisfied by the
allotment and issue of the Consideration Shares to Kibo Mining at
an issue price of 6 pence per Consideration Share.
Except for the Loan, which will be assigned by Kibo Cyprus to
the Company on Completion, all intercompany debt between Kibo
Cyprus, Kibo Mining and any other members of the Kibo Gold Group on
the one hand, and Kibo Gold on the other, will be extinguished and
Kibo Mining will release and discharge the Kibo Gold Group in
respect of any such debts or other liabilities, with effect from
Completion.
Kibo Mining will retain initial responsibility, at its cost, for
each of the Applications comprising the Imweru Option Portfolio and
the Lubando Option Portfolio and will use its reasonable endeavours
to ensure that an Offer is made in respect thereof. Kibo Mining
will notify the Enlarged Group of an Offer made in respect of any
Application, and the Enlarged Group may elect to confirm acceptance
of such Offer (in which event the Enlarged Group will be
responsible for the payment of all relevant fees), or to reject
such Offer (in which event Kibo Mining will allow the Offer to
lapse). Where the Enlarged Group has elected to accept an Offer and
the resulting Prospecting Licence would be issued to a member of
the Kibo Mining Group (as the applicant of record), Kibo Mining
will procure the transfer of the PL, when issued, to the Enlarged
Group at the cost of the Enlarged Group.
Similarly, Kibo Mining will retain responsibility, at its cost,
for the Retained Licence and will use its reasonable endeavours to
resolve the administrative issues with the licensing authorities.
Should the Retained Licence be confirmed in good standing, all
future costs associated with this Prospecting Licence would be for
the account of Opera.
Additionally, Kibo Mining has agreed to procure the transfer to
the Enlarged Group of the Protocol Licences at the cost of the
Enlarged Group.
Completion of the Acquisition is conditional on, inter alia;
(i) the Placing Agreement having been entered into by all the
parties thereto and having become unconditional (other than in
respect of any condition relating to Admission occurring);
(ii) the receipt of the Rule 9 Waiver;
(iii) the passing of Resolutions 1, 6, 7 and 8; and
(iv) Admission taking place.
The Company shall have the right to terminate the Sale and
Purchase Agreement prior to the satisfaction or waiver of all of
the conditions if, inter alia;
(i) anything occurs which has, or is likely to have after
Completion, a material adverse effect on the business, operations,
assets, position (financial, trading or otherwise), profits or
prospects of the Kibo Gold Group; or
(ii) any contract, licence or financial agreement that is
material to the business of the relevant party is terminated, or is
likely to be terminated after Completion, which termination has or
is likely to have a material adverse effect on the business,
operations, assets, position (financial, trading or otherwise),
profits or prospects of the Kibo Gold Group.
Customary warranties and certain limitations on claims
apply.
Further information on the Sale and Purchase Agreement is set
out at paragraph 14.1(c) of Part XI of the Admission Document.
Relationship Agreement and Services Agreement with Mzuri
As a result of the issue of the Consideration Shares and the
Kibo Placing Shares, Kibo Mining will be interested in 57.1 per
cent. of the Enlarged Share Capital on Admission. Accordingly, the
Relationship Agreement has been put in place between the Company,
Kibo Mining and Strand Hanson to provide certain safeguards to,
inter alia, ensure that for so long as Kibo Mining and its
associates together are entitled to exercise or control the
exercise of 30 per cent. or more of the Company, the Enlarged Group
is capable of carrying on its business independently of Kibo Mining
as a substantial shareholder and that the Directors act in the best
interests of the Company, independently of Kibo Mining. Further
details of the Relationship Agreement are set out in paragraph
14.1(d) of Part XI of the Admission Document.
Conditional on Admission, the Company has entered into an
agreement with Mzuri Exploration Services Limited ("Mzuri"), a
wholly-owned subsidiary of Kibo Mining, pursuant to which Mzuri
will provide technical and support services, (including in respect
of in-country management and business and accounting functions,
tenement management, government liaison, project support and
operational management) to the Enlarged Group to support the
Enlarged Group's exploration activities (the "Services Agreement")
on an 'at cost' basis, as required by the Company. Unless otherwise
agreed by the Company, fees payable by the Company to Mzuri under
the Services Agreement will not initially be paid in cash but will
accrue up to an amount of GBP95,000 as an interest free, unsecured
loan repayable by the Company not earlier than 24 months from the
date of Admission unless the Company deems it appropriate to repay
the loan earlier.
Under the Services Agreement, Mzuri will potentially source, and
advise the Company in respect of, specialist services (such as the
management of drilling contractors and laboratory analysis), the
final appointment of which (and the terms thereof) would be a
decision for the Company. Mzuri will potentially oversee the
delivery of such services as part of its project and operational
support functions.
Any amendment to the Services Agreement, or any decision made to
undertake a competitive tender process, will be conducted by the
Independent Directors of the Enlarged Group and will be completed
in accordance with the spirit and terms of the Relationship
Agreement, which may involve the provision of a fair and reasonable
opinion by the Independent Directors and the Company's nominated
adviser, if deemed necessary. Further details of the Services
Agreement are set out in paragraph 14.2(e) of Part XI of the
Admission Document.
Fee Shares and Warrants
As part of the respective advisers' fee arrangements, the
Company has agreed to issue and allot on
Admission at the Issue Price:
(i) to Strand Hanson, 1,250,000 Ordinary Shares;
(ii) to Fladgate LLP, 2,116,666 Ordinary Shares; and
(iii) to Beaufort, 1,666,666 Ordinary Shares
Further, as part of Beaufort's fees in respect of the Placing,
the Company has agreed to grant to Beaufort warrants in respect of
1,208,333 Ordinary Shares, exercisable at the Issue Price, pursuant
to the terms of the Warrant Deed.
Settlement, Admission and dealing of the Ordinary Shares
(including the Consideration Shares, the Placing Shares and the Fee
Shares)
The Existing Ordinary Shares are admitted to the standard
listing segment of the Official List and to trading on the Main
Market. In anticipation of the completion of the Acquisition and
the Placing (each of which are subject to the conditions described
in the Admission Document), application has been made to the London
Stock Exchange for the Enlarged Share Capital to be admitted to
trading on AIM.
The Company has applied to the UKLA for cancellation of the
listing of the Ordinary Shares to the standard listing segment of
the Official List and admission to trading on the Main Market
(Cancellation). Subject to Completion occurring, it is expected
that Cancellation and Admission will become effective and dealings
in the Enlarged Share Capital will commence on AIM at 8.00 a.m. on
23 May 2017.
Risk factors
Shareholders should consider fully and carefully the risk
factors which could have a material adverse effect on the Company's
and, following Completion, the Enlarged Group's business, financial
condition, operating results and prospects. Your attention is drawn
to the risk factors set out in Part V "Risk Factors" of the
Admission Document.
Investors should read the whole of the Admission Document and
any information incorporated by reference.
Lock-up Agreements
The Directors and Kibo Mining will be subject to a one-year lock
up (pursuant to AIM Rule 7) and a further one-year orderly market
agreement in respect of the Ordinary Shares that each holds or is
interested in pursuant to the Lock-Up Agreements that each have
entered into with the Company, Strand Hanson Limited and Beaufort
Securities Limited. Further details of the lock-ups are set out in
paragraph 14.1(k) of Part XI of the Admission Document.
Share option plans
The Existing Directors believe it important that directors,
senior management and consultants of the Enlarged Group are
appropriately and properly motivated and rewarded. To this end, the
Company intends to adopt, subject to Shareholder approval, the
Share Option Plans under which options may be granted following
Admission to eligible persons.
Under the Share Option Plans, shares under option will be
limited in total to a maximum of 10 per cent. of the Company's
issued share capital from time to time.
As at the date of the Admission Document, no options have been
granted and no firm proposals have been agreed for the grant of
options under the Share Option Plans or the price or vesting
criteria in respect of such options.
Further details of the Share Option Plans are set out in
paragraph 11 of Part XI of the Admission Document.
Recommendation
The Existing Directors believe that the Proposals promote the
success of the Company for the benefit of its Existing Shareholders
as a whole. Accordingly, the Existing Directors unanimously
recommend that Existing Shareholders vote in favour of the
Resolutions to be proposed at the General Meeting.
The Panel has agreed to the Rule 9 Waiver on the basis that the
Existing Directors, who have been so advised by Strand Hanson,
considers the terms of the Proposals to be fair and reasonable and
in the best interests of Existing Shareholders and the Company as a
whole. In providing its financial advice to the Board, Strand
Hanson has taken into account the Existing Directors' commercial
assessment. For further information on the information disclosed on
Kibo Mining and the Rule 9 Waiver pursuant to the City Code, please
see Part VI of the Admission Document.
Intentions of Directors and irrevocable undertakings
The Existing Directors who directly hold interests in the
Ordinary Shares have irrevocably undertaken to vote in favour of
all of the Resolutions in respect of their own beneficial holdings
amounting, in aggregate, to 2,916,667 Ordinary Shares, representing
approximately 16.91 per cent. of the Existing Ordinary Shares as at
the Latest Practicable Date.
In addition to the Existing Directors, David Steinepreis and
Philip Haydn-Slater have irrevocably undertaken to vote in favour
of all of the Resolutions in respect of their own beneficial
holdings of Ordinary Shares amounting, in aggregate, to 4,333,333
Ordinary Shares, representing approximately, in aggregate, 25.12
per cent. of the Existing Ordinary Shares as at the Latest
Practicable Date. In aggregate, therefore, the number of Ordinary
Shares that have been committed to vote in favour of the
Resolutions equates to 7,250,000 Ordinary Shares, representing
42.03 per cent. of the Existing Ordinary Shares.
-ENDS-
Contacts
Louis Coetzee +27 (0) 83 Kibo Mining Chief Executive
2606126 plc Officer
---------------- ------------- -------------------- --------------------
Andreas +27 (0) 83 River Group Corporate Adviser
Lianos 4408365 and
Designated Adviser
on JSE
---------------- ------------- -------------------- --------------------
Jon Belliss +44 (0) 207 Beaufort Securities Broker
382 8300 Limited
---------------- ------------- -------------------- --------------------
Andrew +61 8 9480 RFC Ambrian Nominated Adviser
Thomson 2500 Limited on AIM
---------------- ------------- -------------------- --------------------
Liz Morley +44 (0) 203 Bell Pottinger Investor and
/ 772 2500 Media Relations
Anna Legge
---------------- ------------- -------------------- --------------------
Kibo Mining - Notes to editors
Kibo Mining is listed on the AIM market in London and the AltX
in Johannesburg. Kibo Mining 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 43-101compliant defined resource, and is developing
a 250-350 MW mouth-of-mine thermal power station, the Mbeya Coal to
Power Project ("MCPP"), previously called the 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 and signed an EPC contract
with SEPCO III on the 19th December 2016.
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's projects are located in the Mtwara Corridor in
southern Tanzania where the Government has prioritized
infrastructural development attracting significant recent
investment in coal and uranium. Kibo Mining 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. Kibo Mining
recognizes the potential to enhance the quality of life and
opportunity for Tanzanian citizens through careful development of
its projects.
Updates on the Kibo Mining's activities are regularly posted on
its website www.kibomining.com.
This announcement contains inside information as stipulated
under the Market Abuse Regulations (EU) no. 596/2014 ("MAR").
Johannesburg
05 May 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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