Kibo Mining consolidates assets with Lake Victoria Gold
Updated : 16:39
Tanzania-focused mineral exploration and development company Kibo Mining announced on Wednesday that it has signed a share purchase agreement, to effect the consolidation of the Imweru and Imwelo gold projects.
The AIM-traded firm said that under the agreement, Sloane Investments - a wholly owned subsidiary - will acquire Tanzoz Minerals - a wholly owned subsidiary of Lake Victoria Gold.
Kibo said the agreement follows the memorandum of understanding signed between Kibo and LVG which was announced on 2 June, and the completion of legal and technical due diligence for the proposed consolidation.
Sloane will acquire 100% of TML, the wholly owned Tanzanian subsidiary of LVG, owner of the Imwelo gold project, in consideration for Sloane shares that will be issued and allotted to LVG or its nominees.
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.
The board said 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.
“I am delighted that we have signed this agreement with Lake Victoria Gold to consolidate the Imweru and Imwelo gold projects,” said Kibo Mining CEO Louis Coetzee.
“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.”
Coetzee said 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 Kibo expects to complete the 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,” Coetzee explained.
“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.”