Wrap Text
Joint Venture with Votorantim Group finalised
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: IE00B61XQX41
(“Kibo” or “the Company”)
Joint Venture with Votorantim Group finalised
Kibo finalises formal strategic joint venture agreement with major Brazilian
industrial conglomerate Votorantim Metaís Participações Ltda, the metals, mining
and smelting arm of the Votorantim Group, for the further exploration and
development of its Haneti Nickel Project.
Dated: 12 December 2012
Kibo Mining plc (“Kibo” or the “Company”) (AIM: KIBO), (JSE: KBO), the Tanzania focused
mineral exploration and development company, is pleased to report that it has now
concluded a formal definitive joint venture agreement (“Joint Venture”) with VOTORANTIM
METAIS PARTICIPAÇÕES LTDA, a subsidiary of the Brazilian industrial conglomerate
Votorantim Group (“Votorantim”), to conduct a joint further exploration work program on
its Haneti properties (“Haneti Project”) which are prospective for nickel and other base and
precious metals.
Salient Features of the Joint Venture
Under the Joint Venture, Votorantim will initially contribute a maximum of GBP 2.7 million
over a period of three years (“Initial Period”), to fully fund an agreed work program budget
at the Haneti Project. Upon expending the full GBP 2.7 million within the Initial Period,
Votorantim will have earned a 50% interest. Once the Initial Period has concluded the
parties will continue to contribute equally to the working capital requirements of the Joint
Venture. During the Initial Period the JV will carry out exploration activities aiming at the
identification of the mineral potential of Haneti, focusing initially on the exploration for
nickel and PGEs in the extensive mafic-ultramafic belt, located at the proximity of Dodoma.
Work conducted during this period will also aim at establishing an initial early stage JORC
compliant mineral resource at Haneti. Following the Initial Period the Joint Venture will
consider the further development of the project on the merits of the exploration results
achieved.
The Joint Venture is subject to certain administrative conditions precedent only, which the
parties have undertaken to conclude within the next 60 days. These include the transfer of
the mineral licenses comprising the Haneti Project to a jointly controlled Tanzanian
operating company and the registration of a Limited Liability Partnership under English Law
through which the parties will fund the Haneti Project.
About Votorantim
Votorantim is one of the largest industrial conglomerates in Latin America. A Brazilian
company with operations in 24 countries worldwide, Votorantim Group’s activities are
focused on key sectors of the economy that demand capital intensive and high scale
production processes in commodities and products including aluminum, nickel, zinc, and
steel. The Group also has a financing division in the form of Votorantim Finance, and,
through its New Business segment, manages its own Venture Capital and Private Equity
funds. In 2010, the Group’s net revenues reached R$ 29.5 billion, of which R$ 5.4 billion
consisted of exports. Cash generation (EBITDA) amounted to R$ 6.6 billion, whilst
investments reached R$ 5.8 billion, earmarked for capacity expansion projects, operating
improvement and acquisition of companies. Votorantim Group is rated as Investment
Grade by the world’s top three credit rating agencies – Standard & Poor’s (BBB), Fitch
Ratings (BBB) and Moody’s (Baa3). The agencies reaffirmed their ratings in March 2012
and this achievement is attributed to the Group’s leadership in the markets where it
operates, its management model, and its governance and transparency policies.
Rationale
Commenting on the conclusion of the formal agreement, Kibo CEO Louis Coetzee said:
“We are pleased to be joining forces with our colleagues at Votorantim in seeking to do
justice to the very promising Haneti Project - both with regard to the commitment of
capital as well as to the leveraging of their very considerable experience and skills acquired
over many years. They are respected industry veterans with a proven understanding of
their chosen fields of operation, and we welcome this opportunity to continue to build
value for our respective shareholders and the people of Tanzania.”
Enquiries:
Louis Coetzee +27 (0)83 2606126 Kibo Mining plc Chief Executive Officer
Stuart Laing +61 8 94802500 RFC Corporate Finance Ltd Nominated Adviser on AIM
Andreas Lianos +27 (0)83 4408365 River Group Corporate Adviser and
Designated Adviser on JSE
Nick Bealer +44 (0)207 7109612 Cornhill Capital Ltd Joint Broker
Tim Metcalfe / +44 (0) 207 9768800 Northland Capital Partners
Matthew Johnson Limited Joint Broker
Matt Beale +44 (0)7966 389196 Fortbridge Public Relations
Updates on the Company’s activities are regularly posted on its website
www.kibomining.com
General Background & Strategy
Kibo was established in early 2008 to explore and develop mineral deposits in Tanzania,
East Africa and was admitted to AIM on 27 April 2010 and the AltX in South Africa on 30
May 2011. The Board of Kibo is composed of professionals whose experience includes
mineral exploration, mine development, mining finance, tax, law, mergers and
acquisitions, and financial control of public companies. It is supported by a competent and
motivated Tanzanian staff that operates from Kibo's operations office in Dar es Salaam
The mineral assets of the Company now comprise five projects in Tanzania - Haneti
(nickel, PGE and gold), Morogoro (Gold), Lake Victoria (Gold), Rukwa (Coal) and Pinewood
(Coal & Uranium). These projects give Kibo access to 38,000 square km of early stage
exploration licenses in Tanzania's premier gold mining region, the Lake Victoria Goldfield,
within the emerging gold exploration regions in eastern Tanzania and uranium & coal
regions in south-western Tanzania.
The Rukwa and Pinewood projects will provide Kibo shareholders with exposure to an
attractive portfolio of strategic energy assets in Tanzania. Importantly, they are situated
within and close to the Mtwara Corridor, an area where the Tanzanian Government has
committed to significant infrastructure development and which has seen recent multi-
million dollar investment in coal and coal-fired power stations and uranium exploration.
The Rukwa project is substantially more advanced than Kibo’s existing exploration
projects, with a significant Mineral Resource of 109Mt of thermal coal already defined.
This provides nearer term development and commercialisation potential, complementing
the earlier stage existing projects held by Kibo. This is further supported by the
memorandum of understanding that has already been entered into with a major Asian
conglomerate for the development of a coal mine and a mine-mouth coal-fired power plant
based on the Rukwa project.
In addition, the Pinewood project encompasses a significant ground holding of prospective
Karoo sequence sedimentary rocks. These sediments are attracting considerable interest
from international companies exploring for uranium and coal mineralisation following some
notable discoveries in recent years.
Kibo's objective is to build shareholder value in a sustainable manner. This objective will
be pursued primarily through the active exploration of its own projects and by using the
Company's experience in Tanzania to acquire attractive exploration and development
assets on competitive terms. Kibo seeks to move projects swiftly up the value curve by
using the Company’s own skills base whilst also seeking to benefit from strategic
collaborative relationships with industry leaders who have special skills and competencies
within their chosen fields of focus. Kibo will undertake continual risk assessment of its
projects and take whatever actions it believes are necessary to ensure that these risks are
mitigated.
Updates on the Company’s activities are regularly posted on its website
www.kibomining.com
Johannesburg
12 November 2012
Corporate and Designated Adviser
Date: 12/12/2012 12:13:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
