RESULTS OF EXTRAORDINARY GENERAL MEETING

RNS Number : 6792L

Kibo Mining Plc

06 September 2012

 



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: IE00B61XQX41

("Kibo" or "the Company")

RESULTS OF EXTRAORDINARY GENERAL MEETING, AND ACHIEVEMENT OF 100% REVERSE TAKEOVER OFFER ACCEPTANCES

Dated: 6 September 2012

Kibo Extraordinary General Meeting Approves RTO

Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO), (JSE: KBO), the Tanzania focused mineral exploration and development company, is pleased to report that its all share acquisitions of Mzuri Energy Limited ("Mzuri Energy") and Mayborn Resource Investments (Pty) Ltd ("Mayborn") have been approved by its shareholders in an Extraordinary General Meeting held in Dublin on 6 September 2012. Mzuri Energy and Mayborn hold coal and uranium exploration projects in Tanzania that have significant potential and will complement and enhance Kibo's portfolio of mineral projects in Tanzania.

100% Acceptances by Shareholders of Mzuri Energy and Mayborn

The Company is also pleased to report that 100% of the shareholders of both Mzuri Energy and Mayborn have now accepted its offer to acquire their Mzuri Energy and Mayborn shares.

Closing of RTO and Listing of Enlarged Share Capital

All the conditions precedent governing the Mzuri Energy acquisition agreement have now been met, and closing of the transaction has occurred by means of the allotment and issue of the 706,964,400 consideration shares at an issue price of GBP0.03 per share. The consideration shares rank pari passu with the Company's existing issued ordinary shares. Application has been made for the admission of the enlarged share capital of Kibo, being 1,122,093,911 ordinary sharesof €0.01 each,to trading on AIM and the JSE, with trading in the enlarged share capital expected to commence at the open of the markets on 7 September 2012.

Continued Support Based On A Culture of Performance and Delivery

Commenting on the closing, Kibo CEO Louis Coetzee said:

"We are grateful that the Company has so far been able to deliver on every aspect of this transaction. It concludes the first step in transforming the new Kibo group into a meaningful and multi-faceted participant in the swiftly developing East African resources- and infrastructure industries with our partners and other stakeholders. We will work hard every day to maintain this culture of performance and delivery as one of the primary principles that drive and motivate the growing Kibo group. We are equally grateful for the continued support of our shareholders, both old and new. The integration of the enlarged group's projects in Tanzania is already well advanced, and we are beginning to see the positive effects of economies of scale and the optimization of operational capacity on the ground.

We are looking forward to working with our partners as well as the Tanzanian government and its agencies to advance the group's projects at optimal speed over the next exploration season."

Enquiries:

Louis Coetzee	[phone]		Kibo Mining plc	Chief Executive Officer
Stuart Laing	[phone]		RFC Corporate Finance Limited	Nominated Adviser on AIM
Andreas Lianos	[phone]		River Group	Corporate Adviser and Designated Adviser on JSE
Nick Bealer	[phone]		Cornhill Capital Ltd	Joint Broker
Matthew Johnson		[phone]	Northland Capital Partners Limited	Joint Broker
Matt Beale	[phone]		Fortbridge	Public Relations

Updates on the Company's activities are regularly posted on its website www.kibomining.com

General Background & Strategy

Kibo is a public company registered in Ireland (company number 451931). Its registered office is Kibo Mining plc, Suite 3, One Earlsfort Centre, Lower Hatch Street, Dublin 2, Ireland. Kibo was established in early 2008 to explore and develop mineral deposits in Tanzania, East Africa and was admitted to AIM on 27 April 2010 and AltX in South Africa on 30 May 2011.

The Board of Kibo is composed of professionals whose experience include mineral exploration, mine development, mining finance, tax, law, mergers and acquisitions, and financial control of public companies. It is supported by a competent and motivated Tanzanian staff that operates from Kibo's operations office in Dar es Salaam.

The mineral assets of the Company comprise three existing and two newly acquired projects in Tanzania - Haneti (nickel, PGE and gold), Morogoro (Gold) and Lake Victoria (Gold) which give Kibo access to over 18,000 km² of early stage exploration licences in Tanzania's premier gold mining region, the Lake Victoria Goldfield and within the newly emerging gold exploration regions in eastern Tanzania.

The proposed acquisitions of Mzuri Energy and Mayborn will add the advanced Rukwa thermal coal project and the Pinewood uranium exploration project to Kibo's portfolio of mineral projects in Tanzania.

The Rukwa and Pinewood projects will provide Kibo shareholders with exposure to an attractive portfolio of strategic energy assets in Tanzania. Importantly, they are situated within and close to the Mtwara Corridor, an area where the Tanzanian Government has committed to significant infrastructure development and which has seen recent multi-million dollar investment in coal and coal-fired power stations and uranium exploration.

The Rukwa project is substantially more advanced than Kibo's existing exploration projects, with a significant Mineral Resource of thermal coal already defined. This provides nearer term development and commercialisation potential, complementing the earlier stage existing projects held by Kibo. This is further supported by the memorandum of understanding that has already been entered into with a major Asian conglomerate for the development of a coal mine and mine-mouth coal-fired power plant based on the Rukwa project. 

In addition, the Pinewood project encompasses a significant ground holdingof prospective Karoo sequence sedimentary rocks. These sediments are attracting considerable interest from international companies exploring for uranium and coal mineralisation following some notable discoveries in recent years.

Kibo's objective is to build shareholder value in a sustainable manner. This objective will be pursued primarily through active exploration of its own projects and by using the Company's experience in Tanzania to acquire attractive exploration and development assets on competitive terms that can be moved swiftly up the value curve by using the company's own skills base whilst also seeking to benefit from strategic collaborative relationships with industry leaders who have special skills and competencies within their chosen fields of focus. Kibo will undertake continual risk assessment of its projects and take whatever actions it believes are necessary to ensure that these risks are mitigated.

Johannesburg

6 September 2012

Corporate and designated advisor

River Group

 

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