Kibo Mining PLC (LON:KIBO) is to take full 100% ownership of the Imweru and Lubando projects in Tanzania as it moves to consolidate its gold interests.
An agreement has been reached with Acacia Mining PLC (LON:ACA) that will see the FTSE 250 miner’s current interest converted into a 2% net smelter royalty.
Kibo wants to make its gold interests in Tanzania more substantial and has agreed to merge Imweru with Lake Victoria Gold Ltd’s adjacent Imwelo project to give them critical mass.
Louis Coetzee, Kibo Mining’s chief executive, said: "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.”