The deal by Kibo Mining sees Acacia Mining, the East African focused gold miner, convert its residual equity interests in the Imweru and Lubando Projects to a 2% Net Smelter Royalty (NSR).
[quote]The agreement was signed between Reef Miners, Kibo’s wholly owned Tanzanian subsidiary which holds the Imweru and Lubando project licences, and ABG Exploration, Acacia’s Tanzanian subsidiary which holds the equity interests in the licences.
The deal gives Kibo 100% ownership in the equity of the Imweru and Lubando projects and represents another important component of the definitive agreement with Lake Victoria Gold (LVG) to consolidate the companies’ respective Imweru and Imwelo gold projects, as announced on 2 June 2016.
“We are very pleased that we have been able to negotiate this agreement with Acacia promptly and on favorable terms,” says Louis Coetzee, CEO of Kibo Mining.
The agreement allows Kibo and Lake Victoria to maximise 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.
With this agreement in place, Kibo expects to move promptly towards execution of the definitive agreement between Kibo and LVG.
Kibo Mining’s significant presence in Tanzania
Kibo Mining controls one of Tanzania’s largest mineral right portfolios with extensive gold focused interests including the Lake Victoria Goldfields and Morogoro projects.
At Lake Victoria, Kibo has 100% owned projects with a 550 000 oz JORC-compliant gold mineral resource at the Imweru project and a 168 000 oz. NI 43-101 compliant gold mineral resource at the Lubando project.
Kibo is currently undertaking a definitive feasibility study on its Imweru project.