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KIBO MINING PLC - Uranium Joint Venture Update and Issue of Shares for Cash

Release Date: 23/09/2015 12:30
Code(s): KBO     PDF:  
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Uranium Joint Venture Update and Issue of Shares for Cash

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:  IE00B97C031
("Kibo" or "the Company")

23 September 2015

Uranium Joint Venture Update & Issue of Shares for Cash
 
Kibo Mining plc (LON:KIBO), the Tanzania focused mineral exploration and development 
company, is pleased to provide an update with regard to the Company's uranium joint venture 
("JV") with Metal Tiger plc (LON:MTR) covering the Pinewood Uranium Project ("Pinewood") 
in Tanzania and the issue of shares for cash in respect of geological services rendered to the 
Company.'

Highlights:
* JV partners Kibo Mining and Metal Tiger plc recognise a positive shift in 
   Uranium sector dynamics, reflecting the anticipated forward demand/supply profile 
   ofthe commodity
* The Pinewood JV has now commenced work and will initially focus on updating 
   a 2009 study and report on regional prospectivity and exploration potential in 
   Tanzania, including the Pinewood Uranium licence portfolio
* Further consideration now being given to supplement the existing joint venture 
   with additional Uranium assets under JV partner review
* Strategic aim of the JV is to build a low cost, but highly strategic Uranium 
   portfolio providing JV partner shareholders with considerable potential upside from 
   an anticipated recovery in the Uranium sector

Louis Coetzee, Chief Executive Officer of Kibo Mining commented: "The information provided 
in the original 2009 report proved extremely useful in the identification of strategic Uranium 
opportunities in Tanzania and we anticipate this updated report will prove equally valuable.

We have long recognised the potential for a resurgence of interest in the Uranium sector and full 
benefit from any such return to favour requires the JV to be well positioned in advance.  By taking 
the strategic decision to build the JV's Uranium exposure we are acting in readiness for a 
Uranium sector revival with all the potential upside that offers to our shareholders.

Further updates will follow as and when material progress is achieved."

Tanzanian Uranium Project Study

In August 2009 a study and report covering Tanzanian uranium potential was prepared by Mzuri 
Resources to assist with the identification of attractive uranium prospective licences for 
acquisition and development in-country.  This report provided coverage of the following elements:

-Mineralisation models for uranium deposits;

-Existing uranium focused operational activities in Tanzania;

-Assessment of regional uranium prospectivity concentrating on south-west and central 
  uranium regions;

-Specific assessment of identified uranium targets.

The JV has decided to commence its work together by undertaking an update of the above study 
and ensuring operational decision making with regard to the Pinewood project, and any potential 
new acquisitions,  is undertaken with a full understanding of the current status of the Tanzanian 
Uranium environment.

The updated study report is expected to be completed and delivered during October 2015 and the 
results of this work will be announced to market as appropriate. In parallel with this work, the JV 
continues to seek uranium acquisition opportunities within Tanzania and other jurisdictions.

Uranium Prospective Joint Venture Areas - Pinewood Portfolio

A wholly owned subsidiary of Kibo Uranium Limited (50% KIBO / 50% MTR), owns a portfolio 
of Uranium prospective licences for exploration in Tanzania (collectively the "Pinewood 
Portfolio").

The Pinewood Portfolio o is located in the south western corner of Tanzania, between the regional 
capitals of Iringa, Mbeya and Songea.  The portfolio consists of 43 licences, offers, applications 
and tenders with a combined surface area of approximately 9,033 square kilometres.

Terms of the initial Uranium Project Joint Venture

Following completion of due diligence in January 2015, the parties entered into a JV agreement on 
the following terms as outlined in the MOU announced on 21 November 2014:

* Metal Tiger has acquired 50% of Kibo Uranium Limited ("KB Uranium"), 
   previously a 100% wholly owned subsidiary of Kibo Mining plc, that owns the 
   Pinewood Portfolio for a consideration of £1

* Metal Tiger is to meet the expenses in relation to the licence renewal fees and other 
   maintenance costs of the Pinewood Portfolio for a minimum of 1 year (estimated to 
   be approximately $100,000) and up to a maximum of 3 years

* Metal Tiger is to expend the first US$800,000 under the JV in expenses and 
   exploration relating to the Pinewood Portfolio, at which point costs moving forward 
   are shared 50/50 between the parties

* At any time following the first anniversary of the JV, on not less than 90 days notice 
   to Kibo, Metal Tiger may elect to cease sole funding of the JV expenditure

* Should Metal Tiger elect to not continue with the JV after the minimum term of one 
   year, or fail to expend US$100,000 by the first anniversary of the JV, or should Metal 
   Tiger fail to expend the full expenditure by the third anniversary of the JV then:

* if less than US$300,000 of the agreed expenditure, the 50% interest in the 
   JV owned by Metal Tiger shall revert back to KB Uranium subject to them 
   exercising a claw-back option;  

* if greater than $300,000 of agreed expenditure, KB Uranium shall have 
   the right to exercise the claw-back option in respect of Metal Tiger's interest 
   in KB Uranium however Metal Tiger shall retain a 10% free carry in the 
   Pinewood Portfolio.

Issue of shares for cash

The Company has today issued 363,290 shares of Eur0.015 ("Ordinary Shares") at 5.38p per share 
(the "Settlement Shares") for cash to settle an invoice of £19,545 in respect of geological services 
to the Company. These services are with respect to work carried out on the on-going Mbeya Coal 
to Power Project (MCCP) Definitive Feasibility Study.

Application will be made for the Settlement Shares to be admitted to trading on AIM and the JSE 
AltX markets. Trading in the settlement shares is expected to commence on AIM and the JSE on 
or around the 29th September ("Admission"). On Admission the Company will have 329,262,047 
Ordinary Shares in issue.
 
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) 207 382 8300
Beaufort Securities Limited
Broker

Oliver Morse
+61 8 9480 2500
RFC Ambrian Limited
Nominated Adviser on AIM

Daniel Thole/ Anna Legge

+44 (0) 203 772 2500

Bell Pottinger
Investor and Media Relations

Kibo Mining - Notes to editors 
Kibo Mining is listed on the AIM market in London and the AltX in Johannesburg. The 
Company is focused on exploration and development of mineral projects in Tanzania, and 
controls one of Tanzania's largest mineral right portfolios. Tanzania provides a secure and stable 
operating environment for the mineral resource industry and Kibo Mining therein.
 
Kibo Mining holds a thermal coal deposit at Rukwa, which has a significant JORC compliant 
defined resource (See Table 1 below), and is developing a 250-350MW mouth-of-mine thermal 
power station, the Mbeya Coal to Power Project ("MCPP"), previously called Rukwa Coal to 
Power Project ("RCPP"), with an established management team that includes Standard Bank as 
Financial Advisor.  Kibo is undertaking a Coal Mining Definitive Feasibility Study and a Power 
Pre-Feasibility Study for the Mbeya project with an integrated Coal-Power interim study report 
to be released in the near term. On 20th April 2015, Kibo signed a Joint Development Agreement 
for the completion of the Definitive Feasibility Studies and development of the MCPP with 
China based EPC contractor SEPCO III.

The Company also has extensive gold focused interests including Lake Victoria Goldfields and 
Morogoro projects. At Lake Victoria, the Company has projects with a 550,000oz JORC 
compliant gold Mineral Resource at Imweru Project (See Table 2 below) and a 168,000oz NI 
43-101 compliant gold Mineral Resource at the Lubando Project (See Table 3 below) in which 
the Company holds a 90% attributable interest. The Company is currently undertaking a 
Definitive Feasibility Study on its Imweru Project.

Kibo also holds the Haneti Project on which the latest technical report confirms prospectivity for 
nickel, PGMs, gold and strategic metals including lithium. 

Kibo Mining further holds the Pinewood (coal & uranium) project where the company has 
entered into a 50/50 Exploration Joint Venture with Metal Tiger plc.

Finally the Company also holds the Morogoro (gold) project where the company has also 
entered into a 50/50 Exploration Joint Venture with Metal Tiger plc.

The Company's projects are located in the established and gold prolific Lake Victoria 
Goldfields, the emerging goldfields of eastern Tanzania and the Mtwara Corridor in southern 
Tanzania where the Government has prioritised infrastructural development attracting 
significant recent investment in coal and uranium. The Company has a positive working 
relationship with the Tanzanian government at local, regional and national levels and works hard 
to maintain positive relationships with all communities where company interests are held.  The 
Company recognises the potential to enhance the quality of life and opportunity for Tanzanian 
citizens through careful development of its projects.

Updates on the Company's activities are regularly posted on its website www.kibomining.com  

Johannesburg
23 September 2015
Corporate and Designated Adviser
River Group



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