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Update on Proposed Acquisition by Opera of the Imweru and Lubando Gold Projects from Kibo Mining plc (“Kibo”)
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")
Dated: 02 March 2017
Update on Proposed Acquisition by Opera of the Imweru and Lubando Gold
Projects from Kibo Mining plc ("Kibo")
Further to the announcements made by Kibo and Opera on 23 September and 2
December 2016, Opera and Kibo are pleased to announce the following update on the
proposed transaction by Opera to acquire the Imweru and Lubando Gold Projects from
Kibo ("the Proposed Transaction"). Opera and Kibo are pleased to confirm that the
transaction documentation in connection to the Proposed Transaction is nearing
completion.
Resource Update on Imweru and Lubando Gold Projects
As part of the Proposed Transaction, under applicable regulation and commercial
requirements, Opera has commissioned an appropriately qualified expert, Minxcon (Pty)
Ltd, to undertake a Competent Person's Report, an evaluation of the geological assets to
be acquired from Kibo by Opera. As part of this review, the directors of Opera and Kibo
have received an update to the resources of Imweru and Lubando Gold Projects.
The updated resources are as follows:
Measured Indicated Inferred Total
Imweru
Tonnes (millions) - 2.367 9.240
Grade (g/t) - 1.19 1.43
Contained Ounces (Oz) - 90,800 424,310 515,110
Lubando
Tonnes (millions) - - 6.78
Grade (g/t) - - 1.10
Contained Ounces (Oz) - - 239,870 239,870
Total Contained Ounces (Oz) - 90,800 664,180 754,980
The information provided in relation to this resource update has been reviewed and
verified by Kibo's qualified person, Noel O'Keeffe B.Sc. (Hons) Geology, PGEO, who is
a qualified person for the purposes of the AIM Rules for Companies.
The final Competent Person's Report will be included in the admission document to be
issued in due course.
Timings
Following the completion of the final aspects of relevant documentation associated with
the Proposed Transaction, the directors of Kibo and Opera are pleased to report that they
are looking forward to interacting with potential investors in the coming weeks in order
to complete the Proposed Transaction as soon as possible.
Summary of Proposed Transaction
A summary of the Proposed Transaction is as follows:
* Subject to the finalisation of the commercial, technical and legal due diligence, the
consideration to acquire the Imweru and Lubando Gold Projects will be satisfied by
the allotment and issue to Kibo on completion of the Proposed Transaction of
61,000,000 ordinary shares of one pence each in the capital of Opera at a price of 6
pence per ordinary share immediately following completion of the Proposed
Transaction (and completion of the fundraising by Opera referred to below).
* As part of the Proposed Transaction, Opera and Kibo have agreed that there will be a
fundraising by way of the issue of new ordinary shares in Opera at a price of 6 pence
per ordinary share. Following a detailed review of the costs associated with the future
work programme and operations following the completion of the Proposed
Transaction, the directors of Kibo and Opera have determined that the minimum
fundraising required to complete the Proposed Transaction will now be œ1.7million,
an increase from œ1.2million as announced in September 2016, due to movements in
foreign exchange and other prudent budgetary considerations.
* As part of the Proposed Transaction, Opera will delist from the Main Market of the
London Stock Exchange and seek admission to the AIM Market of the London Stock
Exchange (AIM) of the enlarged share capital of Opera.
* On completion of the Proposed Transaction it is proposed that Opera will be renamed
Katoro Gold Mining plc.
* Opera had appointed Strand Hanson Limited to act as its Nominated Adviser and
Beaufort Securities Ltd as its broker with respect to the Proposed Transaction.
Shareholders should note that there remain a number of matters upon which completion
of the Proposed Transaction is conditional.
Further announcements in relation to the Proposed Transaction will be made as soon as
appropriate.
Louis Coetzee, CEO of Kibo, said: "We are pleased to be nearing completion of the
above mentioned transaction and looking forward to see work commence on the Imweru
project, as per earlier announcements in this regard.
We are also particularly pleased with the increase in gold ounces in the restated resource
statements."
Paul Dudley, Chairman of Opera commented: "We thank our shareholders for their
support and will provide updates as appropriate in due course as we seek to make further
progress towards the completion of the transaction."
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 for Kibo
Liz Morley / +44 (0) 203 772 Bell Pottinger Investor and Media
Anna Legge 2500 Relations for Kibo
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
2 March 2017
Corporate and Designated Adviser
River Group
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