Kibo Mining plc (“Kibo” or the “Company”) (AIM: KIBO; AltX: KBO) the mineral exploration and development company focused on gold, nickel, coal and uranium projects in Tanzania, is pleased to announce its unaudited half year results for the period ended 30 June

Highlights from the interim results for the period ended 30 June 2013:
  • Decrease in basic and dilutive loss per ordinary share of 19% compared to previous interim results; and
  • Net tangible asset value per ordinary share of (0.76) pence (31 December 2012: (2.17) pence), resulting in an increase in the net tangible asset value per share of 65%.
Highlights from the Chairman, Christian Schaffalitzky’s statement:
  • Initial exploration phase at Haneti under the Votorantim joint venture nears completion with drilling anticipated to commence early next year;
  • Negotiation with EWP on the Rukwa Coal to Power project progressed as the Company continues to win support from stakeholders and investors within and outside Tanzania;
  • Company acquires two new gold projects, Imweru and Lubando, with established gold resources which will be the focus of a drilling programme currently planned for early in 2014;
  • Successful capital re-organization and recent fund raisings puts the Company in good stead to advance work on key projects.
Chairman’s Statement

Dear Shareholder,

I am pleased to present our accounts for the six month period ending 30 June 2013. During the period your board has continued to steer a steady course towards achieving the company’s corporate and exploration objectives of building shareholder value through the discovery, acquisition and development of quality mineral assets in Tanzania. This is being done through our proven exploration capability in the country and our partnerships with major international companies who recognize the potential in our projects. In this regard the recommencement of work on our Haneti project following the signing of a joint venture with the major Brazilian industrial group, Votorantim Metaís Participações Ltda (“Votorantim”), in late 2012 and the signing of a Memo of Understanding with state owned Korean East-West Power (EWP) for the development of our flagship Rukwa Coal to Power Project (Rukwa) are noteworthy developments during the year to date. On the corporate side, we implemented a capital re-organization in March. Since then I am encouraged that our share price is beginning to show some strength and this has helped to carry out a number of recent fund raisings at more favourable prices the proceeds of which will enable us fund our work objectives for the remainder of the year. During the year to date, Des Burke, Cecil Bond and Bernard Poznanski retired from the board to concentrate on other business interests. These planned retirements follow the Company’s corporate acquisitions and AIM/JSE re-admission during 2012. I wish to extend thanks on behalf of the board to Des, Cecil and Bernard for their contribution to the completion of these transformational acquisitions during 2012. I will now outline in more detail below these main developments highlighted above on both the exploration and corporate fronts for 2013 to date.


Exploration during the period focused on our Haneti Ni-PGM project which is being funded by Votorantim under a joint venture signed in December 2012. The joint venture provides an option for Votorantim to expend GBP 2.7 million on exploration over a three-year period to earn a 50% interest in the project. Work commenced in April with the mobilization of field crews and is continuing. As you will no doubt be aware from our regular project updates over the last few months, the results from soil sampling, detailed geological mapping and regional reconnaissance work are meeting expectations and have helped us refine our geological and mineralisation models for the project. Drill targets have been selected and it is anticipated that following this initial exploration phase expected to end in the middle of October, a drilling programme will commence in early 2014.

We announced in June that we have postponed follow up field exploration on the Lake Victoria, Morogoro and Pinewood projects to 2014 in order to focus resources on the Rukwa and Haneti projects. We have used this break in field operations to carry out a comprehensive evaluation and rationalization of our mineral interests (including issued Prospecting Licences, Offers and Applications) which has resulted in an approximately 50% reduction in our total tenement area. This process which is on-going will allow us to focus on our most prospective exploration areas while making significant cost savings in licence fees. Post period, as part of the tenement rationalization process, we also announced the acquisition of two brownfield resource based gold exploration projects in northern Tanzania which complement our existing Lake Victoria project holdings. Imweru and Lubando together have a combined gold resource of just less than 798,000 oz. at an average grade of about 1.4 grams per tonne. We believe the up-side exploration potential on these projects is significant and we plan to carry out an in-fill drilling programme on the projects before the end of this year.

I am also pleased to report that we have made good progress in securing both Tanzanian government support and major company interest in our Rukwa project. This commenced in March with our announcement of the inclusion of Rukwa as a strategic component of the Tanzanian Government’s National Energy Strategy and its commitment to proactively support development of the infrastructure to support the project. In April we announced the selection of Korean state owned multi-national EWP as our preferred development partner and a Memo of Understanding was signed with EWP in July. Negotiation with EWP is continuing in preparation for their due diligence review which will include site visit to the project. Meanwhile we are continuing to win support for the project from stakeholders and investors both within and outside Tanzania.


The interim accounts cover the 6-month period to the 30 June 2013. These are our first interim accounts following the change in the Company’s financial year-end from 30 September to 31 December. The accounts reflect the impact of the Company’s share reorganisation carried out during the period the net effect of which was a change in the par value of the Company’s shares from €0.01 to €0.015 and a rollback of the issued and unissued share capital on a ratio of 1 to 15. The terms of unexercised warrants and options at the re-organization date were adjusted pro rata (the expiry dates remain unchanged). The board is pleased with the results of the share re-organization which has resulted in a less volatile share trading price and this has contributed to our ability to raise funds at more attractive prices since the period end.

In conclusion, I would like to thank our board and management for their dedicated work under the direction of Louis Coetzee our CEO and thank them for the progress that has been made during the first half of 2013. I look forward to continued progress on the Company’s projects for the remainder of 2013 and beyond.

Christian Schaffalitzky

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