Kibo to fast-track gold assets with heads of agreement with Opera

JOHANNESBURG (miningweekly.com) – Aim- and AltX-listed Kibo Mining has consolidated its Imweru and Lubando gold projects, in northern Tanzania, into a newly renamed company Katoro Gold Mining.

This followed the signing of a heads of agreement with London-listed Opera Investment for the unloading of Kibo’s wholly-owned UK subsidiary Sloane Developments for 61-million Opera shares of 1p issued at a price of 6p apiece.

Opera will delist from the main market of the London bourse and the enlarged-share rebranded Katoro will list on the Aim market, with the board of directors initially comprising three directors nominated by Kibo and two directors nominated by Opera.

“Kibo now finds itself in a position where the development of both the company’s advanced gold projects will be fast-tracked with the strategic advantage of an independent ability and capability to fund further development into production,” said Kibo CEO Louis Coetzee.

The Tanzania-focused mineral exploration and development company’s Imweru and Lubando assets have a combined total mineral inventory of about 700 000 oz of gold at 1 g/t to 2 g/t.

A definitive feasibility study (DFS) has been started on the Imweru project, with initial production targets of 50 000 oz/y, to be ramped up to 100 000 oz/y.

“It remains our objective to complete a DFS on Imweru and obtain a mining right for [the project] by the third quarter of 2017, followed by a process of securing and finalising funding for the construction of a gold mine at Imweru, with mine commissioning to commence at the start of the second or third quarter of 2018,” he added.

The deal is subject to an agreed minimum fundraising of £1.2-million by way of the issue of new ordinary shares in Opera at a price of 6p a share, and remains subject to commercial, technical and legal due diligence.

The deal excluded Lake Victoria Gold’s (LVG’s) Imwelo gold project, which formed part of an earlier share purchase agreement to consolidate LVG’s Imwelo with Kibo’s Imweru projects.

LVG was not able to meet some of the conditions precedent.