Aim-listed Kibo Mining has sold its Kibo Nickel subsidiary to Aim-listed Katoro Gold for 15.34-million shares valued at about £200 000.
The transaction includes Kibo Nickel’s subsidiary Eagle Exploration and the Haneti nickel project, in Tanzania.
The sale is in line with Kibo’s strategy of becoming a major regional power player in Africa, as the sale allows for the company to focus on its three energy projects that are under development.
These projects include the Mbeya coal-to-power project, in Tanzania; the Mebesekwa coal independent power project, in Botswana; and the joint venture Benga independent power project, in Mozambique.
The acquisition, meanwhile, forms part of Katoro’s diversification strategy.
Katoro, which already owns two gold projects in Tanzania, has raised £325 000 through a placing of 25-million new shares at 1.3p apiece to further develop its projects in Tanzania, including the Haneti project.
Katoro will prioritise the development of an exploration programme for Haneti.
“Haneti is a highly prospective high-grade nickel sulphide asset and is a great addition to Katoro's portfolio. Historic work has already yielded exceptional high grades of up to 13.59% nickel, as well as discoveries of gold, cobalt and platinum and some significant lithium anomalies.
“With independent work already outlining the potential for a significant nickel deposit, we are excited about initiating an exploration and development plan. This, in tandem with the strong market fundamentals for nickel, makes Haneti an exciting prospect which we hope will add significant value to the company, said Katoro chairperson Louis Coetzee, who is also the CEO of Kibo.
Katoro was spun out from Kibo in early 2017.