10 August 2016

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 signed a Share Purchase Agreement (the “Agreement”) to effect the consolidation of the Imweru and Imwelo gold projects.

Under the Agreement, Sloane Investments Limited (“Sloane”), a wholly owned subsidiary of the Company, will acquire Tanzoz Minerals Limited (“TML”), a wholly owned subsidiary of Lake Victoria Gold (“LVG”) (the “Transaction”). The Agreement follows the Memorandum of Understanding (“MOU”) signed between Kibo and LVG which was announced on 2 June 2016 and completion of legal and technical due diligence for the proposed consolidation.

The principle terms of the Agreement between the Company and LVG are:

  • Sloane, a 100% UK subsidiary of Kibo and owner of the Imweru project, will acquire 100% of TML, the wholly owned Tanzanian subsidiary of LVG, owner of the Imwelo gold project;
  • Sloane will acquire the whole of the issued share capital of TML in consideration for Sloane shares that will be issued and allotted to LVG or its nominee(s) (the “Consideration Shares”);
  • Upon completion Kibo will hold 52% of the shares in Sloane, and LVG will hold the remaining 48%, prior to funding and stock exchange admission;
  • Allotment of a portion of the Consideration Shares to LVG will be deferred pending confirmation of assignment of title of licenses within the Imwelo gold project.

Conditions precedent under the Agreement are:

  • Sloane, as the 100% owner of the Imweru and Imwelo projects, will become a public limited company and will make application for its shares to be admitted to trading on AIM and the JSE;
  • Admission to trading on AIM and the JSE to take place within three months of completion of the Transaction.
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[ott_teaser btn_text=”Download” btn_icon=”icon-right-big” btn_url=”https://kibo.energy/wp-content/uploads/Kibo-sign-Difinitive-Agreement-with-Lake-Victoria-Gold.pdf” btn_target=”_blank”]Kibo signs Definitive Agreement with Lake Victoria Gold Ltd for the Consolidation of the Imweru & Imwelo Gold Projects[/ott_teaser]