SMM11 27 -: Kibo Mining said on Monday that after receiving the approval of the relevant regulatory authorities, it had completed the all-stock transaction of the sale of Kibo nickel assets to Katoro Gold.
Kibo will retain a 2 per cent mining royalty on any nickel or mineral concentrate produced and sold from any of Kibo Nickel's properties.
Upon receipt of the consideration shares traded by AIM in London, Kibo will hold 82.9 million common shares of Katoro, accounting for 55.53 per cent of Katoro's expanded share capital.
The sale is in line with the strategy of Kibo Mining's parent company, Kibo Energy, which will become a focus of the three major energy projects in Africa.
Kibo has also developed three similar coal-fired power generation projects in Tanzania, Botswana; And Mozambique, aimed at making use of considerable economies of scale and opportunity in strategic partnerships, procurement, equipment, human capital, implementation capacity and capacity, and project financing.
Louis Coetzee, chief executive of Kibo, said that while they recognized the potential of the Haneti Nickel project, the board felt that as Kibo became a leading regional energy company, it was better suited to Katoro's portfolio.
"this sale allows us to focus on advancing our energy portfolio in Tanzania, Botswana and Mozambique," Coetzee said. "Progress is being made in the development of each project, and we will continue to work closely with different government and national institutions, as well as international development partners, including GE and SEPCOIII."
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