Tanzania-focused Kibo Mining has signed a heads of agreement for the sale of its wholly-owned Sloane Developments with Opera Investment.
The HoA provides for the following to occur contemporaneously or immediately after the transaction:
- Subject to commercial, technical and legal due diligence, the consideration to acquire the Imweru and Lubando gold projects will be satisfied by the allotment and issue to Kibo on completion of the proposed transaction of 61,000,000 ordinary shares in the capital of Opera at 6 pence apiece
- As part of the proposed transaction, Opera and Kibo have agreed that there will be a fundraising by way of the issue of new ordinary shares in Opera at a price of 6p apiece. The proposed transaction will be subject to a minimum fundraising of £1,200,000 before expenses.
- Opera will delist from the Main Market of the London stock Exchange and the enlarged share capital of Opera following completion will contemporaneously seek admission to the AIM Market of the London Stock Exchange (AIM).
- Opera will be renamed Katoro Gold Mining plc and the board will initially comprise 3 directors nominated by Kibo and 2 directors nominated by Opera
Kibo said: "The transaction will no longer include the originally envisaged Imwelo project from LVG due to the fact that the latter was not able to meet some of the conditions precedent as called for under the agreement, by which Sloane Developments LTD was to acquire 100% of Tanzoz Minerals LTD.
"The gold projects for the new AIM listed company will now comprise, in addition to our flagship Imweru project, our Geita East projects (Lubando, Pamba & Busolwa projects).
Geita East contains the Lubando project (located approximately 70 km east of Imweru) and has a NI 43-101 compliant Mineral Resource of 2,593,710 tonnes at 2 g/t, 0.5 g/t cut-off (168,300 oz. gold). Taken together Imweru and Lubando have a total mineral inventory in the region of 700,000 oz. gold at 1-2 g/t and what the Company believes is a significant resource."
At 2:40pm: (LON:KIBO) Kibo Mining share price was -0.63p at 8.25p