JOHANNESBURG – Kibo Mining said on Monday that it had completed the sale of Kibo Nickel to Katoro Gold in an all share transaction following receipt of relevant regulatory approvals.
In June, multi-asset Africa-focused energy and resource company Kibo announced that it had agreed to sell Kibo Nickel's Haneti Nickel Project in Tanzania to Katoro Gold for about 15.4 million shares in Katoro at a price of 1.3 pence per share, which valued the total deal at £200,000.
Kibo will retain a two percent net royalty of any nickel or mineral concentrates produced and sold from any of Kibo Nickel's properties.
On admission of the consideration shares for trading on AIM in London, Kibo will hold 82.9 million ordinary shares in Katoro, representing 55.53 percent of the enlarged share capital of Katoro.
The sale is consistent with the strategy of Kibo Energy, the parent company of Kibo Mining, to focus on the development of its three energy projects as it becomes a major regional power player in Africa.
Kibo is simultaneously developing three similar coal-fuelled power projects in Tanzania, Botswana; and Mozambique, with the intention to leverage considerable economies of scale and timing in respect of strategic partnerships, procurement, equipment, human capital, execution capability and capacity, as well as project finance.
Louis Coetzee, Kibo's chief executive, said though they recognised the potential of Haneti Nickel Project, the board believed that it was 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," Coetzee said.
"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.."
African News Agency (ANA)