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KIBO MINING PLC - Kibo Issues of Shares for Cash Settles all Creditors

Release Date: 01/10/2013 08:00
Code(s): KBO     PDF:  
Wrap Text
Kibo Issues of Shares for Cash – Settles all Creditors

 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:
 KIBOISIN:
 IE00B61XQX41
 (“Kibo” or “the Company”)

 Dated: 1 October 2013

                   Kibo Issues of Shares for Cash – Settles all Creditors

Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX: KBO), the mineral
exploration and development company focused on gold, nickel, coal and uranium projects in
Tanzania, is pleased to announce that it has issued 2 356 548 new ordinary shares of Eur0.015
(“Ordinary Shares”) at 5p per share (the “Placing Shares”) for cash, to settle all currently
outstanding creditors. With the issue of these shares the board is pleased to announce that the
Company has no outstanding debt or creditors.

Application will be made for the Placing Shares to be admitted to trading on AIM and the JSE
AltX markets. Trading in the Placing Shares is expected to commence on AIM and the JSE on
or around the 7 October 2013 ("Admission"). On Admission, the Company will have
141,116,691 Ordinary Shares in issue.

Louis Coetzee, CEO of the Company, commented: “We are very pleased to announce that
Kibo is now completely debt and creditor free and that all our resources can be focused on the
aggressive and diligent development of the various projects in Kibo, most notably the Rukwa
Coal to Power Project and the Imweru and Lubando gold projects recently reported on in
earlier announcements.”

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) 20 3216 2630       XCAP                     Broker
   Stuart Laing        +61 8 94802500         RFC Ambrian       Nominated Adviser on AIM
                                                Limited
   Matt Beale        +44 (0)7966 389196        Fortbridge            Investor 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 in London on 27 April 2010 and AltX in Johannesburg on 30
May 2011. The Board of Kibo is composed of professionals whose experience include mineral
exploration, mine development, mining finance, tax, law, mergers and acquisitions, and
financial control of public companies. It is supported by competent and motivated a Tanzanian
staff that operates from Kibo's operations office in Dar es Salaam.

The mineral assets of the Company comprise five projects areas in Tanzania - Haneti (nickel,
PGE and gold), Morogoro (Gold), Lake Victoria (Gold), Rukwa (Coal) and Pinewood (Coal &
Uranium).

The Lake Victoria project covering a gold prospective licence portfolio in Tanzania’s premier
gold mining region, the Lake Victoria Goldfield, been recently enhanced by the addition of
two brownfield gold projects Imweu and Lubando. Both projects have NI 43-101 compliant
total gold resource of approximately 798,000 ounces (total of Measured, Indicated and
Inferred for both projects).


    TABLE1: IMWERU MINERAL RESOURCE SUMMARY–BASECASE*
           Category                Measured Resource                Indicated Resource             Inferred Resource
        Resource (t)                          -                                -                        17,649,900
        Grade (g/t)                           -                                -                           1.11
       Grade (oz /ton)                        -                                -                           0.032
       Total Gold (oz)                        -                                -                         629,600
  *Numbers are rounded. Composites capped at 25g/t gold. Cut-off grade of 0.5g/t gold based on a gold price of
  US$850/oz and assumed100% metallurgical recovery .CIM definitions were followed for Mineral Resources.



    TABLE2:LUBANDO MINERALRESOURCE SUMMARY–BASECASE*
                                                       East Zone                            East Zone
             Category                West Zone           South         East Zone Mid          North               Total
      Measured Resource
      Measured Resource (t)            107,900            4,880            16,900             54,440             184,150
          Grade (g/t)                    1.69              2.52             1.72                2.48               1.95
        Total Gold (oz)                 5,900              400              950                4,340             11,500


      Indicated Resource
      Indicated Resource (t)           280,710           18,330            61,000            149,350             509,420
          Grade (g/t)                   1.61               2.23             1.89               2.73               1.99
         Total Gold (oz)               14,500             1,300             3,700             13,120             32,600
       Inferred Resource
        Total Resource (t)            1,090,000          65,470            209,340           535,330         1,900,140
           Grade (g/t)                   1.27             1.56               3.34              3.13             2.03
         Total Gold (oz)               44,550            3,300              22,500           53,900           124,200
  *Numbers are rounded. Composites capped at10.85g/tgold. Cut-off grade of 0.5g/t gold based on a gold price of
  US$850/oz and assumed100% metallurgical recovery .CIM definitions were followed for Mineral Resources.


These projects provide the Company with drill ready targets supporting its objective to
increase the size and quality of the existing resource in the short term.

The Haneti project is the subject of a joint venture with Brazilian Votorantim Metais
Participações Ltda, a member of Votorantim Group. The Rukwa and Pinewood projects are
situated 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 thermal coal already defined. The project enjoys strong
support expressed by the Tanzanian Government for the expedited development of a coal mine
and mine-mouth coal-fired power plant and which is further enhanced by the now formal
relationship between the Korean Government owned Korean East – West Power Co. Ltd.
(“EWP”) and Kibo. In this relationship the parties have entered into a formal MOU which
states the parties’ respective commitments towards the joint development of the Rukwa Coal
to Power Project (“RCPP”), where EWP will be responsible for developing and operating the
power generation side of the RCPP and Kibo will be responsible for developing and operating
the mining side of the RCPP.

Kibo's objective is to build shareholder value in a sustainable manner. This objective will be
pursued primarily through 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 that can be moved 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.

Review by Qualified Person

The information in this announcement that relates to the Imweru and Lubando mineral
resources is taken from reports titled “Technical Report on the Imweru property (Updated),
Mwanza, Tanzania” dated March 1, 2010 and “Technical Report on the Lubando property,
Mwanza, Tanzania” dated 31st August 2009” (the “Reports”) Both Reports are NI 43-101
compliant and were prepared for Great Basin Gold Rusaf Gold Limited by Nathan Eric Fier
C.P.G., P.Eng. Market Director for EBA Engineering Consultants Ltd and a Senior Mining
Consultant. Mr. Fieris registered as a Certified Professional Geologist with the American
Institute of Professional Geologists, Registration No 10062, and a professional Engineer in
British Columbia, Canada Registration No. 135165. He has extensive experience in the
evaluation and reporting of Archaean Gold projects. The Company’s Exploration Director,
Noel O’Keeffe has reviewed the Reports and the references to them in this announcement.

Johannesburg
1 October 2013

Corporate and Designated Adviser
River Group

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