JOHANNESBURG (miningweekly.com) – Aim-listed Kibo Mining has signed a share purchase agreement with Lake Victoria Gold (LVG) to effect the consolidation of the companies’ Imweru and Imwelo projects, in Tanzania.
Under the terms of the agreement, Kibo’s wholly owned subsidiary Sloane Investments will acquire LVG subsidiary Tanzoz Minerals.
Upon completion of the transaction, Sloane will change its name to Katoro Gold Mining.
Kibo will hold 52% of the shares in Sloane and LVG the balance of shares, prior to funding and stock exchange admission.
“Active development of the Katoro project will commence immediately thereafter and we expect production in early 2018. The combined resources of Kibo and LVG will significantly add to our ability and capacity to achieve these timelines,” said Kibo CEO Louis Coetzee.
The initial mineral assets of Katoro will comprise the mineral rights within Kibo's Imweru project and LVG's Imwelo project, which together cover an area of 480 km2 as a contiguous block, 35 km east of the producing Geita mine within the Lake Victoria Goldfield in northern Tanzania.
The assets include a combined gold mineral resource of 755 200 oz, which will be increased to one-million ounces and provide the basis for a mine development with a near-term production target of 50 000 oz/y within 12 to 18 months.
The medium-term production target for Katoro is 100 000 oz/y.