Further to its announcement on 22 June 2018, Kibo Energy plc (Kibo), the multi-asset Africa-focused energy company, has announced that Kibo Mining (Cyprus) Ltd, its wholly owned subsidiary, has completed the sale of Kibo Nickel Ltd (Kibo Nickel) to Katoro Gold Ltd (Katoro) in an all-share transaction, following receipt of relevant regulatory approvals. The sale is consistent with Kibo's strategy to focus on the development of its three energy projects as it becomes a major regional power player in Africa.
Louis Coetzee, Kibo's CEO, said: "Whilst we recognise the potential of the Haneti nickel project, the Board believes that it is better placed within Katoro's portfolio as Kibo progresses towards becoming a leading regional energy company. This sale enables us to focus exclusively on the advancement of our portfolio of energy projects in Tanzania, Botswana and Mozambique. Progress is being made in the development of each project and we continue to work closely with the different governmental and national bodies, as well as our international development partners including General Electric and SEPCOIII. I look forward to updating shareholders with relevant updates throughout the rest of the year."
Terms of sale
Under the terms of the sale, Kibo 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 1.3 p per share (valued at £200 000) (consideration shares). The consideration shares will 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.
On admission of the consideration shares for trading on AIM, Kibo will hold 82 987 179 ordinary shares in Katoro, representing 55.53% of the enlarged share capital of Katoro.
Read the article online at: https://www.globalminingreview.com/finance-business/27112018/kibo-mining-sells-kibo-nickel/