2nd Jun 2016 09:01
LONDON (Alliance News) - Kibo Mining PLC on Thursday said it has signed a memorandum of understanding with Lake Victoria Gold Ltd to consolidate the companies' Imweru and Imwelo gold projects in Tanzania.
The Tanzania-focused mineral exploration and development company's Imweru gold project is adjacent to Lake Victoria's Imwelo project, and the two will be combined into one company called NEWCO.
The board of NEWCO will comprise a mix of Kibo and Lake Victoria management.
Kibo has a production target of 50,000 ounces of gold per year for the combined project within 12 to 18 months, and 100,000 ounces per year within 24 to 30 months.
"Amalgamation of the two projects will establish a project with a significant gold resource with the added strategic advantage of an existing mining right and the opportunity to pursue near-term production. At a resource level we believe that the combined project can reach more than a one million ounce resource," Chief Executive Louis Coetzee said in a statement.
"I am particularly excited about the gold mine development and production expertise that LVG will bring to the enlarged project, which will complement Kibo's exploration experience. We believe that the proposed transaction can unlock significant value for Kibo shareholders," he added.
Shares in Kibo Mining were trading up 6.5% at 5.06 pence on Thursday.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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