JOHANNESBURG (miningweekly.com) – Dual-listed Kibo Mining has reached an agreement with Acacia Mining to convert Acacia's residual equity interests in the Imweru and Lubando projects, in Tanzania, to a 2% net smelter royalty.
The agreement was signed between Reef Miners, Kibo's wholly-owned Tanzanian subsidiary, which holds the project licences, and ABG Exploration, Acacia's Tanzanian subsidiary, which holds the equity interests in the licences.
The agreement gives Kibo 100% ownership in the equity of the projects and represents another important component of the definitive agreement with Lake Victoria Gold (LVG) to consolidate the companies' respective Imweru and Imwelo gold projects.
Kibo CEO Louis Coetzee noted on Friday that the agreement allowed Kibo and Lake Victoria to increase value for shareholders from the planned mine development at Imweru and ensured that the consolidated Imweru/Imvelo project would be free of any contingent liabilities and unquantified obligations.
“With this agreement in place, we expect to move promptly towards execution of the definitive agreement between Kibo and LVG," he said.