TIDMKIBO
RNS Number : 9393Z
Kibo Mining Plc
23 September 2015
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")
23 September 2015
Kibo Mining plc
("Kibo Mining" or the "Company")
Uranium Joint Venture Update & Issue of Shares for Cash
Kibo Mining plc (LON:KIBO), the Tanzania focused mineral
exploration and development company, is pleased to provide an
update with regard to the Company's uranium joint venture ("JV")
with Metal Tiger plc (LON:MTR) covering the Pinewood Uranium
Project ("Pinewood") in Tanzania and the issue of shares for cash
in respect of geological services rendered to the Company.'
Highlights:
-- JV partners Kibo Mining and Metal Tiger plc recognise a
positive shift in Uranium sector dynamics, reflecting the
anticipated forward demand/supply profile ofthe commodity
-- The Pinewood JV has now commenced work and will initially
focus on updating a 2009 study and report on regional prospectivity
and exploration potential in Tanzania, including the Pinewood
Uranium licence portfolio
-- Further consideration now being given to supplement the
existing joint venture with additional Uranium assets under JV
partner review
-- Strategic aim of the JV is to build a low cost, but highly
strategic Uranium portfolio providing JV partner shareholders with
considerable potential upside from an anticipated recovery in the
Uranium sector
Louis Coetzee, Chief Executive Officer of Kibo Mining commented:
"The information provided in the original 2009 report proved
extremely useful in the identification of strategic Uranium
opportunities in Tanzania and we anticipate this updated report
will prove equally valuable.
We have long recognised the potential for a resurgence of
interest in the Uranium sector and full benefit from any such
return to favour requires the JV to be well positioned in advance.
By taking the strategic decision to build the JV's Uranium exposure
we are acting in readiness for a Uranium sector revival with all
the potential upside that offers to our shareholders.
Further updates will follow as and when material progress is
achieved."
Tanzanian Uranium Project Study
In August 2009 a study and report covering Tanzanian uranium
potential was prepared by Mzuri Resources to assist with the
identification of attractive uranium prospective licences for
acquisition and development in-country. This report provided
coverage of the following elements:
- Mineralisation models for uranium deposits;
- Existing uranium focused operational activities in Tanzania;
- Assessment of regional uranium prospectivity concentrating on
south-west and central uranium regions;
- Specific assessment of identified uranium targets.
The JV has decided to commence its work together by undertaking
an update of the above study and ensuring operational decision
making with regard to the Pinewood project, and any potential new
acquisitions, is undertaken with a full understanding of the
current status of the Tanzanian Uranium environment.
The updated study report is expected to be completed and
delivered during October 2015 and the results of this work will be
announced to market as appropriate. In parallel with this work, the
JV continues to seek uranium acquisition opportunities within
Tanzania and other jurisdictions.
Uranium Prospective Joint Venture Areas - Pinewood Portfolio
A wholly owned subsidiary of Kibo Uranium Limited (50% KIBO /
50% MTR), owns a portfolio of Uranium prospective licences for
exploration in Tanzania (collectively the "Pinewood
Portfolio").
The Pinewood Portfolio o is located in the south western corner
of Tanzania, between the regional capitals of Iringa, Mbeya and
Songea. The portfolio consists of 43 licences, offers, applications
and tenders with a combined surface area of approximately 9,033
square kilometres.
Terms of the initial Uranium Project Joint Venture
Following completion of due diligence in January 2015, the
parties entered into a JV agreement on the following terms as
outlined in the MOU announced on 21 November 2014:
-- Metal Tiger has acquired 50% of Kibo Uranium Limited ("KB
Uranium"), previously a 100% wholly owned subsidiary of Kibo Mining
plc, that owns the Pinewood Portfolio for a consideration of
GBP1
-- Metal Tiger is to meet the expenses in relation to the
licence renewal fees and other maintenance costs of the Pinewood
Portfolio for a minimum of 1 year (estimated to be approximately
$100,000) and up to a maximum of 3 years
-- Metal Tiger is to expend the first US$800,000 under the JV in
expenses and exploration relating to the Pinewood Portfolio, at
which point costs moving forward are shared 50/50 between the
parties
-- At any time following the first anniversary of the JV, on not
less than 90 days notice to Kibo, Metal Tiger may elect to cease
sole funding of the JV expenditure
-- Should Metal Tiger elect to not continue with the JV after
the minimum term of one year, or fail to expend US$100,000 by the
first anniversary of the JV, or should Metal Tiger fail to expend
the full expenditure by the third anniversary of the JV then:
o if less than US$300,000 of the agreed expenditure, the 50%
interest in the JV owned by Metal Tiger shall revert back to KB
Uranium subject to them exercising a claw-back option;
o if greater than $300,000 of agreed expenditure, KB Uranium
shall have the right to exercise the claw-back option in respect of
Metal Tiger's interest in KB Uranium however Metal Tiger shall
retain a 10% free carry in the Pinewood Portfolio.
Issue of shares for cash
The Company has today issued 363,290 shares of Eur0.015
("Ordinary Shares") at 5.38p per share (the "Settlement Shares")
for cash to settle an invoice of GBP19,545 in respect of geological
services to the Company. These services are with respect to work
carried out on the on-going Mbeya Coal to Power Project (MCCP)
Definitive Feasibility Study.
Application will be made for the Settlement Shares to be
admitted to trading on AIM and the JSE AltX markets. Trading in the
settlement shares is expected to commence on AIM and the JSE on or
around the 29(th) September ("Admission"). On Admission the Company
will have 329,262,047 Ordinary Shares in issue.
Contacts
+27 (0) 83 Kibo Mining Chief Executive
Louis Coetzee 2606126 plc Officer
------------------- ------------ --------------- -------------------
Andreas Lianos +27 (0) 83 River Group Corporate Adviser
4408365 and Designated
Adviser on JSE
------------------- ------------ --------------- -------------------
Jon Belliss +44 (0) 207 Beaufort Broker
382 8300 Securities
Limited
------------------- ------------ --------------- -------------------
Oliver Morse +61 8 9480 RFC Ambrian Nominated Adviser
2500 Limited on AIM
------------------- ------------ --------------- -------------------
Daniel Thöle/ +44 (0) 203 Bell Pottinger Investor and Media
Anna Legge 772 2500 Relations
------------------- ------------ --------------- -------------------
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 Rukwa, which has a
significant JORC compliant defined resource (See Table 1 below),
and is developing a 250-350MW 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
Coal-Power interim study report to be released in the near term. On
20(th) 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 projects with a 550,000oz JORC compliant gold
Mineral Resource at Imweru Project (See Table 2 below) and a
168,000oz NI 43-101 compliant gold Mineral Resource at the Lubando
Project (See Table 3 below) in which the Company holds a 90%
attributable interest. 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.
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