Kibo acquires Coal Assets

Kibo acquires Coal Assets

2014-06-12T15:09:48+00:00April 2nd, 2012|

Acquisition of controlling interests in strategic energy assets in Tanzania
• Kibo to acquire control of a JORC compliant 129mt thermal coal resource; and
• Kibo to acquire control of licenses prospective for uranium.
Dated: 2 April 2012

Introduction

The Directors of Kibo Mining plc (“Kibo” or the “Company”) (AIM: KIBO), the Tanzania focused mineral exploration and development company, are pleased to advise that the Company has, subject to conditions precedent set out below, acquired controlling interests in two portfolios of strategic energy assets in Tanzania. These consist of a coal asset in the form of the Rukwa Coal Project near Mbeya and a portfolio of additional licences prospective for both uranium and coal. The Company has entered into definitive agreements with Mzuri Energy Holdings Limited (“Mzuri”) for the acquisition of a minimum of 51% of all the issued share capital of Mzuri Energy Limited (“MEL”) and with Mayborn Resources Investments (Pty) Ltd (“Mayborn”) for the acquisition of a minimum of 51% of all the issued share capital of Mayborn.

Transactions

Kibo will acquire no less than 51% of MEL, through its wholly owned subsidiary Morogoro Gold Limited (“Morogoro”) by means of the issue of new shares in Kibo at an issue price of GBP0.03 per new Kibo share. The total number of consideration shares will be determined by the formulae set out below. If Kibo acquires 100% of both MEL and Mayborn, the maximum number of new shares will be 790,297,740.

  • Mzuri is a private company incorporated in the Republic of Cyprus.
  • MEL is a private company incorporated in Canada.
  • Mzuri Coal is a private company incorporated in the Republic of Cyprus.
  • Mbeya Uranium is a private company incorporated in the Republic of Cyprus.
  • Rukwa Coal is a private company incorporated in the United Republic of Tanzania.
  • Mayborn is a private company incorporated in the Republic of South Africa.

Mzuri owns, or will on closing own, 22,415,004 (or approximately 40%) of the issued and outstanding shares of, and all claims on shareholders’ loan accounts against MEL;

1. MEL holds 100% of the issued and outstanding shares of and all claims on shareholders loan accounts against Mzuri Coal Limited (“Mzuri Coal”) who in turn holds 100% of the issued and outstanding shares of and all claims on shareholders loan accounts against Rukwa Coal Limited (“Rukwa Coal”).

2. MEL also holds, or will on closing hold, 100% of the issued and outstanding shares of and all claims on shareholders loan accounts against Mbeya Uranium Limited (“Mbeya Uranium”).

Rukwa Coal owns two prospecting licenses in the Mbeya region of the United Republic of Tanzania on which it has established a JORC compliant inferred and indicated resource, of at least 129,000,000 tons of thermal coal.

Mbeya Uranium, through its subsidiaries, is either the owner or the applicant in respect of the prospecting licenses in respect of mineral properties which it has contributed to an unincorporated joint venture with Mayborn.

Rationale

Commenting on the transactions, CEO Louis Coetzee said:

“Through these acquisitions the Company increases its foothold in Tanzania, a region that is on the radar of a substantial number of investors and major industrial groups in Asia and North America.

The acquisitions provide our shareholders with exposure to a large portfolio of energy assets. This is part of a broader strategic decision by the Company to combine aggressive exploration within Kibo’s current portfolio with the active pursuit of suitable acquisitions to build and develop a multi-commodity exploration portfolio of more advanced exploration project opportunities in addition to our current gold and base metal work programs.

“We expect to benefit from a number of synergies across the expanded portfolio and to increase the potential for Kibo to make commercial discoveries in this highly prospective region. We look forward to keeping shareholders updated on both our exploration and acquisition activities.”

Download full report:

[ott_teaser btn_text=”Download” btn_icon=”icon-right-big” btn_url=”http://kibo.energy/wp-content/uploads/RNS-Announcement-Kibo-MEL-Acquisition-dated-020412.pdf” btn_target=”_blank”]Kibo acquires Coal Assets[/ott_teaser]

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