26th Nov 2018 16:15
LONDON (Alliance News) - Africa-focused energy company Kibo Energy PLC said on Monday it has sold subsidiary Kibo Nickel Ltd to London-listed Katoro Gold PLC for GBP200,000 in Katoro shares.
Katoro will issue 15.4 million shares at a price of 1.3 pence per share to acquire Kibo Nickel, which wholly owns the 5,000 square kilometres polymetallic Haneti Nickel Project in Tanzania.
Shares in Katoro dropped 12% at 0.75 pence on Monday.
In addition, Kibo will retain a 2% net smelter return royalty in respect of nickel or mineral concentrates produced and sold from any of Kibo Nickel's properties.
Kibo Energy will now hold 83.0 million shares in Katoro in total, reflecting a 56% stake in the company.
"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," said Kibo Chief Executive Officer Louis Coetzee.
Shares in Kibo Energy closed untraded in Johannesburg at ZAR0.49, while the stock is trading down 2.5% at 1.925 pence in London.
Related Shares:
Kibo EnergyKatoro Gold