Net Smelter Royalty Agreement with Acacia

RNS Number : 9550E

Kibo Mining Plc

22 July 2016

 

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:IE00B97C0C31

("Kibo" or "the Company")

22 July 2016

Kibo Reaches Net Smelter Royalty Agreement with Acacia at Imweru and Lubando

Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX: KBO), the Tanzania focused mineral exploration and development company, is pleased to announce it has reached an agreement ("the Agreement") with Acacia Mining plc, ("Acacia") for the conversion of Acacia's residual equity interests in the Imweru and Lubando Projects to a 2% Net Smelter Royalty ("NSR"). The Agreement was signed between Reef Miners Limited, Kibo's wholly owned Tanzanian subsidiary which holds the Imweru and Lubando project licences, and ABG Exploration Limited, Acacia's Tanzanian subsidiary which holds the equity interests in the licences.

The Agreement gives Kibo 100% ownership in the equity of the Imweru and Lubando Projects and represents another important component of the definitive agreement with Lake Victoria Gold LTD ("LVG") to consolidate the companies' respective Imweru and Imwelo gold projects, as announced on 2^nd June.

Louis Coetzee, CEO of Kibo Mining, said: "We are very pleased that we have been able to negotiate this agreement with Acacia promptly and on favorable terms. The agreement allows Kibo and Lake Victoria to maximize value for their respective shareholders from the planned mine development at Imweru and ensures that the consolidated Imweru / Imvelo project will be free of any contingent liabilities and unquantified obligations.

With this agreement in place, we expect to move promptly towards execution of the definitive agreement between Kibo and LVG."

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
Daniel Thöle / Anna Legge	[phone]	Bell Pottinger	Investor and Media Relations

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 Standard Bank as Financial Advisor. Kibo is undertaking a Coal Mining Definitive Feasibility Study and a Power Pre-Feasibility Study for the Mbeya project with an integrated Bankable Feasibility Study report for the MCPP to be released in the near term. On 20th April 2015, Kibo signed a Joint Development   Agreement   for   the   completion   of   the   Definitive   Feasibility Studies and development of the MCPP with China based EPC contractor SEPCO III.

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  

22 July 2016

Corporate and Designated Adviser

River Group

 

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