JOHANNESBURG (miningweekly.com) – Aim-listed Opera Investments is eyeing May 23 as the date to cancel its admission on the London bourse – and the start of trading of newly formed spin-off Katoro Gold Mining, as the proposed sale of AltX- and Aim-listed Kibo Mining’s northern Tanzania-based gold assets is wrapped up.

Opera conditionally agreed to acquire Kibo Gold, through which the Imweru and Lubando gold projects, in Tanzania, are held, from Kibo Mining for £3.66-million, settled through the issue of 61-million new ordinary shares in Opera to Kibo at 6p apiece.

“The completion of the proposed transaction will be transformational for Opera and we are pleased, subject to shareholder approval, to have finalised the Aim admission process. We look forward to progressing operational developments as quickly as possible following admission as Katoro Gold,” said Opera nonexecutive director and chairperson Paul Dudley.

In aggregate, 91-million ordinary shares are being issued and, on admission, the company will have 108.2-million ordinary shares in issue, which at 6p apiece, implies a market capitalisation of about £6.5-million.

Opera had also conditionally raised gross proceeds of £1.5-million, through the issue of 25-million new ordinary shares at 6p a share, for which Kibo Mining had subscribed for 833 333 placing shares at a cost of £50 000.

“Together with Opera’s existing cash resources of £486 000, the net proceeds of the placing will be used to fund the development of the Imweru project, including a feasibility study and a drilling programme, and to provide general working capital to the enlarged group,” the parties highlighted in a joint statement on Friday.

Kataro plans to start production at Imweru – the advancement and development of which was the company’s current primary focus – with an initial target of 50 000 oz/y gold within two years of admission.

“We are pleased to have raised the necessary funding to advance the Imweru project and are looking forward to commencing the feasibility study and drilling following admission,” added Kibo CEO Louis Coetzee.

The board of the new group comprised Coetzee as executive chairperson and Opera nonexecutive director Myles Campion, Dudley and Kibo director Tinus Maree as nonexecutive directors.