Johannesburg - Kibo Mining said on Friday that it has relinquished several early stage non-core prospecting licences, licence offers and licence applications in the Lake Victoria Region in Tanzania.
This follows Kibo's comprehensive technical and commercial review of its mineral licence portfolio in Tanzania. The review was in line with the company's strategy to focus resources on its Mbeya Coal-to-Power Project (MCPP), Haneti nickel project, and the Imweru and Lubando gold projects.
The Tanzania focused-mineral exploration and development company said this "rationalisation" of Lake Victoria early-stage licence portfolios had resulted in significant cost savings. Kibo said the rationalisation was carried out as part of the process of facilitating the spin-out of its key gold resource based projects, Imweru and Lubando in the region, to Katoro Gold.
Kibo has agreed to sell the project to Katoro, its subsidiary in which it is a 57.1 percent shareholder. The effect of the rationalisation is that Kibo has now surrendered most of its early stage gold licences in the Lake Victoria Goldfields, and its sole remaining gold interests in this region are in the greater Imweru and Lubando licence portfolios through its majority interest in Katoro.
Altogether, 79 licences were surrendered constituting a total Licence area of approximately 800km2. Louis Coetzee, chief executive of Kibo Mining, said the rationalisation would align the company's development strategy. "Rationalisation of our Lake Victoria project is a result of a continuous in-house evaluation of our mineral portfolios to ensure they are aligned with and positively support and contribute towards our corporate development strategy," Coetzee said.
"The significant cost savings and additional availability of resources from this rationalisation will be re-assigned to our flagship MCPP and Haneti nickel projects."
AFRICAN NEWS AGENCY