TIDMKIBO
RNS Number : 3509Y
Kibo Mining Plc
02 March 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")
Dated: 02 March 2017
Update on Proposed Acquisition by Opera of the Imweru and
Lubando Gold Projects from Kibo Mining plc ("Kibo")
Further to the announcements made by Kibo and Opera on 23
September and 2 December 2016, Opera and Kibo are pleased to
announce the following update on the proposed transaction by Opera
to acquire the Imweru and Lubando Gold Projects from Kibo ("the
Proposed Transaction"). Opera and Kibo are pleased to confirm that
the transaction documentation in connection to the Proposed
Transaction is nearing completion.
Resource Update on Imweru and Lubando Gold Projects
As part of the Proposed Transaction, under applicable regulation
and commercial requirements, Opera has commissioned an
appropriately qualified expert, Minxcon (Pty) Ltd, to undertake a
Competent Person's Report, an evaluation of the geological assets
to be acquired from Kibo by Opera. As part of this review, the
directors of Opera and Kibo have received an update to the
resources of Imweru and Lubando Gold Projects.
The updated resources are as follows:
Measured Indicated Inferred Total
------------------------ ---------- ---------- --------- --------
Imweru
------------------------ ---------- ---------- --------- --------
Tonnes (millions) - 2.367 9.240
------------------------ ---------- ---------- --------- --------
Grade (g/t) - 1.19 1.43
------------------------ ---------- ---------- --------- --------
Contained Ounces (Oz) - 90,800 424,310 515,110
------------------------ ---------- ---------- --------- --------
Lubando
------------------------ ---------- ---------- --------- --------
Tonnes (millions) - - 6.78
------------------------ ---------- ---------- --------- --------
Grade (g/t) - - 1.10
------------------------ ---------- ---------- --------- --------
Contained Ounces (Oz) - - 239,870 239,870
------------------------ ---------- ---------- --------- --------
Total Contained Ounces
(Oz) - 90,800 664,180 754,980
------------------------ ---------- ---------- --------- --------
The information provided in relation to this resource update has
been reviewed and verified by Kibo's qualified person, Noel
O'Keeffe B.Sc. (Hons) Geology, PGEO, who is a qualified person for
the purposes of the AIM Rules for Companies.
The final Competent Person's Report will be included in the
admission document to be issued in due course.
Timings
Following the completion of the final aspects of relevant
documentation associated with the Proposed Transaction, the
directors of Kibo and Opera are pleased to report that they are
looking forward to interacting with potential investors in the
coming weeks in order to complete the Proposed Transaction as soon
as possible.
Summary of Proposed Transaction
A summary of the Proposed Transaction is as follows:
-- Subject to the finalisation of the commercial, technical
and legal due diligence, the consideration to acquire the
Imweru and Lubando Gold Projects will be satisfied by the
allotment and issue to Kibo on completion of the Proposed
Transaction of 61,000,000 ordinary shares of one pence
each in the capital of Opera at a price of 6 pence per
ordinary share immediately following completion of the
Proposed Transaction (and completion of the fundraising
by Opera referred to below).
-- As part of the Proposed Transaction, Opera and Kibo have
agreed that there will be a fundraising by way of the issue
of new ordinary shares in Opera at a price of 6 pence per
ordinary share. Following a detailed review of the costs
associated with the future work programme and operations
following the completion of the Proposed Transaction, the
directors of Kibo and Opera have determined that the minimum
fundraising required to complete the Proposed Transaction
will now be GBP1.7million, an increase from GBP1.2million
as announced in September 2016, due to movements in foreign
exchange and other prudent budgetary considerations.
-- As part of the Proposed Transaction, Opera will delist
from the Main Market of the London Stock Exchange and seek
admission to the AIM Market of the London Stock Exchange
(AIM) of the enlarged share capital of Opera.
-- On completion of the Proposed Transaction it is proposed
that Opera will be renamed Katoro Gold Mining plc.
-- Opera had appointed Strand Hanson Limited to act as its
Nominated Adviser and Beaufort Securities Ltd as its broker
with respect to the Proposed Transaction.
Shareholders should note that there remain a number of matters
upon which completion of the Proposed Transaction is
conditional.
Further announcements in relation to the Proposed Transaction
will be made as soon as appropriate.
Louis Coetzee, CEO of Kibo, said: "We are pleased to be nearing
completion of the above mentioned transaction and looking forward
to see work commence on the Imweru project, as per earlier
announcements in this regard.
We are also particularly pleased with the increase in gold
ounces in the restated resource statements."
Paul Dudley, Chairman of Opera commented: "We thank our
shareholders for their support and will provide updates as
appropriate in due course as we seek to make further progress
towards the completion of the transaction."
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 8300 Beaufort Securities Limited Broker
------------------------ --------------------- ---------------------------- ---------------------------------------
Oliver Morse +61 8 9480 2500 RFC Ambrian Limited Nominated Adviser on AIM for Kibo
------------------------ --------------------- ---------------------------- ---------------------------------------
Liz Morley / Anna Legge +44 (0) 203 772 2500 Bell Pottinger Investor and Media Relations for Kibo
------------------------ --------------------- ---------------------------- ---------------------------------------
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
2 March 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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