Kibo Mining completes sale of nickel project in Tanzania
The sale is part of its ambitions of being a power player in Africa.
Minerals exploration and development company Kibo Mining said it has completed the sale of Kibo Nickel to Katoro Gold, an exploration firm, in an all share transaction following receipt of relevant regulatory approvals.
Kibo – the resources company based in Ireland with a primary listing on the London Stock Exchange’s Alternative Investment Market (AIM) and a secondary listing on the JSE – said the sale of the nickel asset is in line with its strategy to focus on the development of its three energy projects.
This is as the company has ambitions of becoming a major regional power player in Africa.
The deal will be purchased and settled through an all-share acquisition agreement.
Kibo has sold Kibo Nickel, which is based in Tanzania, to Katoro Gold for 15.4 million new ordinary shares in Katoro at a price of 1.3 pence per share, valuing the deal at £200 000 (R3.5 million).
Kibo will retain a two percent net royalty of any nickel or mineral concentrates produced and sold from any of Kibo Nickel’s properties. On admission of the consideration shares for trading on AIM in London, Kibo will hold 82.9 million ordinary shares in Katoro, representing 55.53 percent of the enlarged share capital of Katoro.
Louis Coetzee, Kibo’s CEO, said its board believes that the nickel project is better placed within Katoro’s portfolio as Kibo progresses towards becoming a leading regional energy company.
“This sale enables us to focus exclusively on the advancement of our portfolio of energy projects in Tanzania, Botswana and Mozambique. Progress is being made in the development of each project and we continue to work closely with the different governmental and national bodies, as well as our international development partners including General Electric,” said Louis in a statement.
Kibo is simultaneously developing three similar coal-fuelled power projects: the Mbeya Coal to Power Project in Tanzania; the Mabesekwa Coal Independent Power Project in Botswana; and the Benga Independent Power Project (IPP) in Mozambique.
In June, Kibo announced a joint venture agreement for the potential development of the Benga IPP, a planned coal-fired power station in Mozambique. In August the company announced it had been renamed Kibo Energy.
Katoro said the nickel project was a “highly prospective, high-grade nickel sulphide asset”, with previous samples having identified grades of up to 13.59 percent nickel, 0.25 percent cobalt, 78 parts per billion (ppb) gold, 413 ppb platinum, 1930 ppb palladium, and 927 parts per million (ppm) copper alongside “significant” lithium anomalies.