Wrap Text
Cessation of Metal Tiger Joint Ventures in Tanzania
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”)
24 February 2017
Cessation of Metal Tiger Joint Ventures in Tanzania
Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX: KBO), the Tanzania focused
mineral exploration and development Company, is pleased to announce that it has reached
agreement with Metal Tiger plc, the Company’s Joint Venture (“JV”) partner in Tanzania to cease
JV activities at the Pinewood and Morogoro Joint Ventures with immediate effect and relinquish
the licences back to the local authorities.
Background information with regard to the JVs can be found in market announcements released
on 21 November 2014 in respect of Pinewood and 19 January 2015 in respect of Morogoro.
Both Metal Tiger plc and Kibo Mining plc have experienced considerable success in respect of
certain other projects of their business portfolio and this has led to these interests becoming the
absolute focus of each company.
Metal Tiger’s investment in Botswana has seen a substantial and developing Copper/Silver
discovery and significant progress is being made in the Company’s investment in Thailand where
the JV partner is looking to permit and produce from a longstanding silver/lead/zinc mine with
processing plant (requiring refurbishment) in-situ. Kibo Mining has substantially advanced its
Mbeya Coal to Power Project (as well as its Imweru and Lubando) gold projects, as evidenced by
the recent completion of the Integrated Bankable Feasibility Study announced to the market on 23
January 2017.
From a corporate perspective each of the projects noted latterly have the ability to materially
further the success of the companies, and also provide a significant opportunity, through
continuing investment, to have a major local economic impact, providing much needed
commodities in the case of Botswana and Thailand, and power in the case of Tanzania.
Furthermore, should the companies continue to invest successfully, there will be a continuing
increase in the number of employment opportunities and socio-economic benefits for the local
communities where the projects are situated and also for the local, regional and national
governments through the generation of mineral royalties and corporate taxation.
It is therefore appropriate that both companies focus their efforts, energies and resources on these
important core projects and take the steps necessary to reduce non-core investments and activities,
including Pinewood and Morogoro, which although worthwhile in themselves, could distract each
company from their main commercial purpose.
Both companies can confirm that there are no material ongoing costs to be covered as a result of
the cessation of the Joint Ventures.
Metal Tiger retains 10m warrants to subscribe for Kibo Mining plc new ordinary shares at a price
of 9p (and subject to two exercise price increases if Kibo Mining shares trade at 18p or higher for
15 consecutive trading days – full terms detailed in 19 January 2015 announcement) with an
exercise period until 25 February 2018.
Metal Tiger has confirmed it will not invest in Tanzania for a minimum period of 6 months from
today’s date, however Metal Tiger agrees that Kibo Mining may work with other parties to
reconstruct a portfolio of Uranium interests in Tanzania, should Kibo choose to so do at some
point in the future.
Kibo Mining’s CEO. Louis Coetzee commented: “In late 2014 and early 2015 the £450,000
invested by Metal Tiger made a material difference to the financing of Kibo Mining at the time,
and we were and are grateful for that support.
The Joint Ventures at Pinewood and Morogoro have not progressed as planned as explained
above and although unfortunate, this reflects the need to focus investment correctly in smaller
companies with multiple projects. Our decision is however in perfect alignment with our stated
strategy to reduce the Company’s exposure to early stage exploration projects.
We wish Metal Tiger success with their ventures going forward.”
Michael McNeilly, CEO of Metal Tiger plc commented: "Both Kibo Mining and Metal Tiger
commenced the Joint Ventures as smaller companies with earlier stage interests. Both companies
have been fortunate and achieved considerable success in certain projects and it has been
necessary to focus time and resources on the areas of our business where the most rapidly
advancing progress was possible.
Given the need for continuing focus for commercial reasons, and reflecting the impact our
commercial success would have on the local economies in which we work, it is essential for us to
ensure we focus our efforts in the most important areas.
We wish our friends at Kibo Mining great success with their work and are grateful for the
opportunity that the investment in Kibo Mining in late 2014 and early 2015 and the Joint Ventures
themselves, provided for the Metal Tiger business and its shareholders."
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 Beaufort Securities Broker
8300 Limited
Oliver Morse +61 8 9480 2500 RFC Ambrian Nominated Adviser
Limited on AIM
Liz Morley / +44 (0) 203 772 Bell Pottinger Investor and Media
Anna Legge 2500 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 Mbeya, which has a significant NI 43-101 compliant
defined resource, and is developing a 250-350 MW 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 ABSA / Barclays as Financial
Advisor. Kibo has completed a Coal Mining Definitive Feasibility Study and a Power Pre-
Feasibility Study for the Mbeya project and has recently announced the completion of an
integrated Bankable Feasibility Study report for the project. On 25 August 2016, Kibo signed an
Agreement with China based EPC contractor SEPCO III granting it the right to become the sole
bidder for the EPC contract to build the power plant component of the MCPP in exchange for
SEPCO III refunding 50% of the development costs incurred by Kibo to date on the project. Kibo
has already received the first tranche of this funding in the amount of US$1.8 million on the 5th
September 2016
The Company also has extensive gold focused interests including Lake Victoria Goldfields and
Morogoro projects. At Lake Victoria, the Company has 100% owned projects with a 550,000
oz. JORC compliant gold Mineral Resource at the Imweru Project and a 168,000 oz. NI 43-101
compliant gold Mineral Resource at the Lubando Project. 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 prioritized 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 recognizes 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
24 February 2017
Corporate and Designated Adviser
River Group
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