Kibo Mining's wholly-owned subsidiary Kibo Mining (Cyprus) has sold Kibo Nickel Limited to Katoro Gold in an all share transaction. This is in line with Kibo’s strategy of becoming a major regional power player in Africa as the sale allows it to focus on its three energy projects currently in development.
Louis Coetzee, Kibo’s CEO says, “In line with our strategy focused on becoming a major regional power player in Africa, we believe that, whilst the nickels project is very exciting, it can be better advanced within Katoro.
"We continue to make progress advancing our strategy, highlighted by the acquisition announced on 6 June 2018, which expands our reach into Mozambique. Thanks to our experience in the sector and close relationships with international development partners, including General Electric and SEPCO III, we are becoming a preferred development partner for strategic power projects in the region."
"Going forward, our full focus will be on developing our initial three energy projects and delivering value to shareholders by capitalising on the acute power shortage in the region.”
Terms of the sale
Under the terms of the sale, the company has sold its wholly owned-subsidiary, Kibo Nickel, a private company incorporated in the Republic of Cyprus, to Katoro for 15,384,615 new ordinary shares in Katoro at a price of 1.3 p per share (valued at £200,000.
The consideration shares will be issued to the company upon transaction completion and will rank pari passu with the existing shares. The company will also retain a 2% NSR royalty in respect of nickel or mineral concentrates produced and sold from any of Kibo Nickel’s properties.
The sale is subject to the parties having received the approval of any regulatory authority with jurisdiction regarding the transaction and whose approval is required to implement its provisions.