Update on Proposed Acquisition by Opera

RNS Number : 3509Y

Kibo Mining Plc

02 March 2017

 

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 £1.7million, an increase from £1.2million 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	[phone]	Kibo Mining plc	Chief Executive Officer
Andreas Lianos	[phone]	River Group	Corporate Adviser and Designated Adviser on JSE
Jon Belliss	[phone]	Beaufort Securities Limited	Broker
Oliver Morse	[phone]	RFC Ambrian Limited	Nominated Adviser on AIM for Kibo
Liz Morley / Anna Legge	[phone]	Bell Pottinger	Investor and Media 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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