JOHANNESBURG (miningweekly.com) – Tanzania-focused miner Kibo Mining has received confirmation from London-listed Metal Tiger that it is satisfied with the results of its due diligence on Kibo's prospective Pinewood portfolio and will now proceed to finalise a joint venture (JV) agreement for uranium exploration with Kibo.
Kibo announced in November that it had entered into a memorandum of understanding (MoU) with Metal Tiger over a possible 50:50 JV on its uranium-prospective Pinewood portfolio, in Tanzania, which comprised 43 licences, offers, applications and tenders with a combined surface area of around 9 000 km2.
Following its commitment to proceed with the JV and under the terms of the MoU, Metal Tiger would now be issued with ten-million warrants for ten-million new ordinary shares in Kibo, with an exercise price of 3p apiece and a term of three years from the date of issue – expected to be January 15.
Kibo confirmed that it had received an immediate notice of exercise for the ten-million Metal Tiger warrants and, upon receipt of the warrant exercise documentation and payment of £300 000, Kibo would arrange for the issue of the associated ten-million shares to Metal Tiger.
It would submit an application for the admission to trading of these shares on the Aim and the JSE.
Under the terms of the JV, Metal Tiger would acquire 50% of Kibo Uranium, a wholly-owned subsidiary of Kibo Mining that owned the Pinewood portfolio.
It would further meet the expenses in relation to the licence renewal fees and other maintenance costs of the portfolio – estimated to be $100 000 – for a minimum of one year and up to a maximum of three years.
The group had also entered into exclusive discussions with Metal Tiger to agree the terms of a JV on Kibo's gold-prospective Morogoro South project, also in Tanzania.
Kibo Mining CEO Louis Coetzee said the exploration of the company’s prospective uranium licences at Pinewood had been reactivated as a result of the agreement.
“We are pleased to see an accelerated warrant exercise and Metal Tiger increasing their shareholding position in Kibo.
“As previously stated, we have secured a stable cash position within the company, and the additional £300 000 from this warrant exercise will enable [Kibo] to undertake its work and finalise appropriate third-party project-based negotiations,” he noted.