Kibo Mining PLC (LON:KIBO) has surrendered most of its early stage licences in the Lake Victoria region of Tanzania as it focuses more on the Mbeya coal mine/power station project and Haneti nickel site.
In total, 79 licences were surrendered over 800 sq km as part of the rationalisation process when it spun out its Imweru and Lubando gold assets into separate listed vehicle Katoro Gold.
Kibo has a majority 57.1% stake in Katoro.
"The surrendered licences cover various non-contiguous single licence and small licence blocks scattered throughout the LVG (Lake Victoria Goldfields).
"All the Licences are at a very early stage of exploration and no longer contribute towards the company's strategic development objectives," Kibo said.
Louis Coetzee, chief executive, added: "The significant cost savings and additional availability of resources from this rationalization will be re-assigned to our flagship MCPP and Haneti nickel projects."
Yesterday, Kibo said it had received written reconfirmation from Tanzania’s Ministry of Mines that it wants the Mbeya coal to power station project to advance as fast as possible.
The country's mines ministry has been in turmoil over a dispute about how much gold in concentrate is being exported from Tanzania.
Louis Coetzee, Kibo’s chief executive, said he was very pleased to have the reconfirmation in light of the changes at the Ministry and also at state power company TANESCO.
Kibo shares fell back 4.44% in early deals, to stand at 5.375p.