Kibo Mining (LON:KIBO) told investors all five of its projects are now active - as joint ventures with AIM peer Metal Tiger at the Morogoro gold prospect and the Pinewood uranium portfolio have kicked off.
In two separate statements, Kibo said Metal Tiiger had transferred the first tranche of funds for the ongoing licence fees and maintenance costs and that it now holds 50% of KB Uranium representing a 50% stake in the venture. It also said Metal Tiger had paid the first tranche of funds under the Morogoro 50/50 deal.
The uranium portfolio consists of 43 licences or tenders on a massive 9,000 sq km area of Tanzania, while the Morogoro portfolio consists of 18 on around 1,400 square kilometres in Tanzania.
Kibo noted that there have recently there have been indicators of a potential recovery in the uranium sector and the restoration of activity at Pinewood could prove highly value generative for both firms.
Kibo Mining's chief executive Louis Coetzee said it meant that all five of Kibo's projects are now active and thus have the potential to deliver value for our shareholders.
"Whilst for some time Kibo Mining has been focused on the company's lead projects at Rukwa Coal to Power, Imweru / Lake Victoria Goldfields and Haneti Nickel, we have always considered the Morogoro Gold licence portfolio to be highly prospective and able to add further considerable value for shareholders with appropriate exploration and development progress.
"Having Morogoro costs funded by Metal Tiger reduces Kibo cash utilisation whilst maintaining a material exposure for shareholders in potential project upside."
Under the deal, Metal Tiger is to spend the first US$800,000 in expenses and exploration relating to the Morogoro South Portfolio, at which point costs moving forward are shared 50/50 between the parties.
Kibo shares nudged 2.17% higher to 5.875p.