- The companies will also relinquish the mine licences back to the local authorities.
- The miner explained in a statement on Friday that both companies had experienced considerable success in other projects, which has led to these interests becoming the absolute focus of each company.
Johannesburg. Dual-listed Kibo Mining has terminated joint venture (JV) activities with Metal Tiger at the Pinewood and Morogoro mines, in Tanzania.
The companies will also relinquish the mine licences back to the local authorities.
The miner explained in a statement on Friday that both companies had experienced considerable success in other projects, which has led to these interests becoming the absolute focus of each company.
Metal Tiger’s investment in Botswana has resulted in a substantial and developing copper/silver discovery, while significant progress is being made in the company’s investment in Thailand, where its JV partner is looking to permit and produce from a long-standing silver/lead/zinc mine with an on-site processing plant.
Meanwhile, with substantial progress made at Kibo’s Mbeya coal-to-power project, paired with advancements at its Imweru and Lubando gold projects, Kibo Mining would shift its focus to these projects.
“Each of the projects can materially further the success of the companies, and provide a significant opportunity, through continuing investment, to have a major local economic impact,” Kibo said.
No material ongoing costs would need to be recovered as a result of the termination, with Metal Tiger retaining ten-million warrants to subscribe for new ordinary shares in Kibo Mining at a price of 9p each.
Metal Tiger has confirmed it will not invest in Tanzania for a minimum period of 6 months from today’s date, however Metal Tiger agrees that Kibo Mining may work with other parties to reconstruct a portfolio of Uranium interests in Tanzania, should Kibo choose to so do at some point in the future.
“Given the need for continuing focus for commercial reasons, and reflecting the impact our commercial success would have on the local economies in which we work, it is essential for us to ensure we focus our efforts in the most important areas,” Metat Tiger said in the statement.(miningweekly.com)