The wholly owned subsidiary of multi-asset Africa focused energy and resource company Kibo Mining Plc (Kibo), Kibo Mining (Cyprus), has sold Kibo Nickel Ltd (Kibo Nickel) to Katoro Gold Ltd (Katoro) in an all-share transaction. This is in line with Kibo’s strategy to become a major regional power player in Africa as the sale allows it to focus on its three energy projects currently in development.
Kibo’s CEO, Louis Coetzee, said: “In line with our strategy focused on becoming a major regional power player in Africa, we believe that, whilst Kibo Nickels’ project is very exciting, it can be better advanced within Katoro. We continue to make progress advancing our strategy, highlighted by the acquisition announced on 6 June 2018, which expands our reach into Mozambique. Thanks to our experience in the sector and close relationships with international development partners, including General Electric and SEPCO III, we are becoming a preferred development partner for strategic power projects in the region. Going forward, our full focus will be on developing our initial three energy projects and delivering value to shareholders by capitalising on the acute power shortage in the region.”
Terms of the sale
According to Kibo, under the terms of the sale, it has sold its wholly owned subsidiary Kibo Nickel, a private company incorporated in the Republic of Cyprus, to Katoro for 15 384 615 new ordinary shares in Katoro at a price of 1.3p per share (valued at £200 000). The consideration shares are to be issued to Kibo upon transaction completion and will rank pari passu with the existing ordinary shares. Kibo will also retain a 2% NSR royalty in respect of nickel or mineral concentrates produced and sold from any of Kibo Nickel’s properties.
Read the article online at: https://www.globalminingreview.com/finance-business/26062018/katoro-gold-acquires-kibo-nickel/