Cessation of Metal Tiger Joint Ventures in Tanzania
24 February 2017
Kibo Mining plc (“Kibo” or the “Company”) (AIM: KIBO; AltX: KBO), the Tanzania focused mineral exploration and development Company, is pleased to announce that it has reached agreement with Metal Tiger plc, the Company’s Joint Venture (“JV”) partner in Tanzania to cease JV activities at the Pinewood and Morogoro Joint Ventures with immediate effect and relinquish the licences back to the local authorities.
Background information with regard to the JVs can be found in market announcements released on 21 November 2014 in respect of Pinewood and 19 January 2015 in respect of Morogoro.
Both Metal Tiger plc and Kibo Mining plc have experienced considerable success in respect of certain other projects of their business portfolio and this has led to these interests becoming the absolute focus of each company.
Metal Tiger’s investment in Botswana has seen a substantial and developing Copper/Silver discovery and significant progress is being made in the Company’s investment in Thailand where the JV partner is looking to permit and produce from a longstanding silver/lead/zinc mine with processing plant (requiring refurbishment) in-situ. Kibo Mining has substantially advanced its Mbeya Coal to Power Project (as well as its Imweru and Lubando) gold projects, as evidenced by the recent completion of the Integrated Bankable Feasibility Study announced to the market on 23 January 2017.
From a corporate perspective each of the projects noted latterly have the ability to materially further the success of the companies, and also provide a significant opportunity, through continuing investment, to have a major local economic impact, providing much needed commodities in the case of Botswana and Thailand, and power in the case of Tanzania. Furthermore, should the companies continue to invest successfully, there will be a continuing increase in the number of employment opportunities and socio-economic benefits for the local communities where the projects are situated and also for the local, regional and national governments through the generation of mineral royalties and corporate taxation.
It is therefore appropriate that both companies focus their efforts, energies and resources on these important core projects and take the steps necessary to reduce non-core investments and activities, including Pinewood and Morogoro, which although worthwhile in themselves, could distract each company from their main commercial purpose.