Kibo sells nickel subsidiary to Katoro Gold

AIM-quoted resource development company Kibo Mining offloaded its Tanzanian nickel operations to Katoro Gold on Friday in an all-share transaction.

Kibo, via its wholly-owned Cyprian subsidiary, sold Kibo Nickel to Katoro for 15.38m new ordinary shares in the gold miner at a price of 1.3p per share - a total value of £200,000.

The shares will be issued to Kibo upon completion of the transaction and will rank 'pari passu' with Katoro's existing shares.

Kibo will also retain a 2% royalty on nickel or mineral concentrates produced and sold from any of Kibo Nickel's properties.

Separately, Kibo participated in a placement announced by Katoro on Friday and subscribed for 5.76m ordinary shares in the firm at a placement price of 1.3p per share, and for a total cost of £75,000 upped its stake in the group to a total of 50.43%.

Louis Coetzee, Kibo's chief executive, said, "In line with our strategy focused on becoming a major regional power player in Africa, we believe that, whilst Kibo Nickels' project is very exciting, it can be better advanced within Katoro.

"Thanks to our experience in the sector and close relationships with international development partners, including General Electric and SEPCO III, we are becoming a preferred development partner for strategic power projects in the region."

As of 0820 BST, Kibo shares had lost 1.63% to 4.23p.