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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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