22nd Jul 2016 07:08
LONDON (Alliance News) - Kibo Mining PLC Friday said it now owns 100% of both the Imweru and Lubando projects in Tanzania after fellow London-listed Acacia Mining PLC converted its stake into a net smelter royalty.
Acacia, which published its interim results on Friday, now holds a 2.0% net smelter royalty for both projects and Kibo will be pleased to have attained full ownership as it is currently attempting to consolidate the Imweru project with the nearby Imvelo project that is owned by Lake Victoria Gold Ltd.
Kibo did not reveal any details of the transaction, stating Acacia had converted its "residual equity interests" in both projects.
"We are very pleased that we have been able to negotiate this agreement with Acacia promptly and on favorable terms. The agreement allows Kibo and Lake Victoria to maximize value for their respective shareholders from the planned mine development at Imweru and ensures that the consolidated Imweru / Imvelo project will be free of any contingent liabilities and unquantified obligations," said Louis Coetzee, chief executive of Kibo.
"With this agreement in place, we expect to move promptly towards execution of the definitive agreement between Kibo and Lake Victoria Gold," he added.
Kibo shares were down 2.1% at 5.26 pence per share on Friday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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Related Shares:
ACA.LKibo Energy