Kibo Mining PLC (LON:KIBO) has completed the merger of its Imweru gold project with Lake Victoria Gold’s adjacent Imwelo property and intends to float it on AIM as separate entity within months.
Katoro Gold Mining Limited will be the name of the new venture, with Louis Coetzee, Kibo’s chief executive (CEO), to be executive chairman and Seth Dickinson CEO.
Sloane Investments, a 100% UK subsidiary of Kibo and owner of the Imweru project, will acquire 100% of TML, the Tanzanian subsidiary of LVG that owns Imwelo.
Kibo will hold 52% of the shares in Sloane, which will change its name to Katoro, and LVG will hold the remaining 48%, prior to funding and stock exchange admission.
Two other independent directors will also be appointed.
The combined Imweru and Imwelo together cover an area of approximately 480 square kilometees (km), 35 km east of the producing Geita mine in northern Tanzania.
The assets include a combined gold mineral resource of approximately 755,200 oz, which Kataro aims to increase to more 1mln oz.
Production of 50,000 oz gold per annum is forecast within 12 to 18 months, which will rise to 100,000 oz per year over the medium term.
Louis Coetzee, Kibo’s chief executive, said the agreement provided a platform to develop Katoro quickly and would give shareholders the opportunity to realise value from its gold assets.
“Active development of the Katoro project will commence immediately thereafter and we expect production in early 2018.
Kibo’s principal project is the Mbeya thermal power station development, also in Tanzania.