Raises further £500,000 in Secondary Placement

 

Kibo Mining Plc

(Incorporated in Ireland)

(Registration Number: 451931)

(External registration number: 2011/007371/10)

Share code on the JSE Limited: KBO

Share code on the AIM: KIBOISIN: IE00B61XQX41

("Kibo" or "the Company")

 

Dated: 11 September 2013

 

Kibo raises further £500,000 in Secondary Placement

 

Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX: KBO), the mineral exploration and development company focused on gold, nickel, coal and uranium projects in Tanzania, is pleased to announce that following further significant institutional demand for the Company's shares it has raised an additional GBP500,000, before expenses, through the issue of 10,000,000 new ordinary shares of Eur0.015 ("Ordinary Shares") at 5p per share (the "Placing Shares") via its UK broker, XCAP Securities plc.

 

The additional funds raised will be used to further supplement the Company's exploration programmes in Tanzania and for general working capital purposes.

 

Application will be made for the Placing Shares to be admitted to trading on AIM and the JSE AltX markets. Trading in the Placing Shares is expected to commence on AIM and the JSE on or around the 18 September 2013 ("Admission"). On Admission, the Company will have 138,760,143 Ordinary Shares in issue.

 

Louis Coetzee, CEO of the Company, commented: "We appreciate investors' support for this fundraising and the recent placing, the combined funds have now placed us in the position to recommence and aggressively pursue ground operations in our Lake Victoria Goldfields operations, including the recently acquired Imweru and Lubando licenses, which currently hold a JORC compliant Total Mineral Resource of 798,000 ounces of gold (See Resource Table below). 

 

In addition, all exploration costs relating to the Company's Haneti Nickel PGMs and Gold project are being covered by Votorantim under our Joint Venture Agreement.  As announced on 9th September, our work programme at Haneti is on track and generating very valuable and encouraging data.

 

The Company is also in very advanced discussions with our Korean partners EWP, on the further development of the Rukwa Coal to Power Project ("RCPP") and we hope to update the market shortly in this regard. Latest developments have shown a keen interest for participation in the RCPP from potential funding institutions, as well as growing support from key stakeholders.

 

We are now well positioned and focused to progress all elements of the Kibo business."

 

 

 

 

 

 

Contacts

 

Louis Coetzee	+27 (0)83 2606126	Kibo Mining plc	Chief Executive Officer
Andreas Lianos	+27 (0)83 4408365	River Group	Corporate Adviser and Designated Adviser on JSE
Jon Belliss	+44 (0) 20 3216 2630	XCAP	Broker
Stuart Laing	+61 8 94802500	RFC Ambrian Limited	Nominated Adviser on AIM
Matt Beale	+44 (0)7966 389196	Fortbridge	Investor Relations

 

Updates on the Company's activities are regularly posted on its website www.kibomining.com

 

General Background & Strategy

 

Kibo was established in early 2008 to explore and develop mineral deposits in Tanzania, East Africa and was admitted to AIM in London on 27 April 2010 and AltX in Johannesburg on 30 May 2011.  The Board of Kibo is composed of professionals whose experience include mineral exploration, mine development, mining finance, tax, law, mergers and acquisitions, and financial control of public companies. It is supported by competent and motivated a Tanzanian staff that operates from Kibo's operations office in Dar es Salaam.

 

The mineral assets of the Company comprise five projects areas in Tanzania - Haneti (nickel, PGE and gold), Morogoro (Gold), Lake Victoria (Gold), Rukwa (Coal) and Pinewood (Coal & Uranium).

 

The Lake Victoria project covering a gold prospective licence portfolio in Tanzania's premier gold mining region, the Lake Victoria Goldfield, been recently enhanced by the addition of two brownfield gold projects Imweu and Lubando. Both projects have NI 43-101 compliant total gold resource of approximately 798,000 ounces (total of Measured, Indicated and Inferred for both projects).

 

TABLE1: IMWERU MINERAL RESOURCE SUMMARY-BASECASE*
Category	Measured Resource	Indicated Resource	Inferred Resource
Resource (t)	-	-	17,649,900
Grade (g/t)	-	-	1.11
Grade (oz/ton)	-	-	0.032
Total Gold (oz)	-	-	629,600

*Numbers are rounded. Composites capped at 25g/t gold. Cut-off grade of 0.5g/t gold based on a gold price of US$850/oz and assumed100% metallurgical recovery .CIM definitions were followed for Mineral Resources.

 

 

TABLE2:LUBANDO MINERALRESOURCE SUMMARY-BASECASE*
Category	West Zone	East Zone South	East Zone Mid	East Zone North	Total
Measured Resource
Measured Resource (t)	107,900	4,880	16,900	54,440	184,150
Grade (g/t)	1.69	2.52	1.72	2.48	1.95
Total Gold (oz)	5,900	400	950	4,340	11,500
Indicated Resource
Indicated Resource (t)	280,710	18,330	61,000	149,350	509,420
Grade (g/t)	1.61	2.23	1.89	2.73	1.99
Total Gold (oz)	14,500	1,300	3,700	13,120	32,600
Inferred Resource
Total Resource (t)	1,090,000	65,470	209,340	535,330	1,900,140
Grade (g/t)	1.27	1.56	3.34	3.13	2.03
Total Gold (oz)	44,550	3,300	22,500	53,900	124,200

*Numbers are rounded. Composites capped at10.85g/tgold. Cut-off grade of 0.5g/t gold based on a gold price of US$850/oz and assumed100% metallurgical recovery .CIM definitions were followed for Mineral Resources.

 

These projects provide the Company with drill ready targets supporting its objective to increase the size and quality of the existing resource in the short term.

 

The Haneti project is the subject of a joint venture with Brazilian Votorantim Metais Participações Ltda, a member of Votorantim Group. The Rukwa and Pinewood projects are situated close to the Mtwara Corridor, an area where the Tanzanian Government has committed to significant infrastructure development and which has seen recent multi-million dollar investment in coal and coal-fired power stations and uranium exploration.

 

The Rukwa project is substantially more advanced than Kibo's existing exploration projects, with a significant Mineral Resource of thermal coal already defined. The project enjoys strong support expressed by the Tanzanian Government for the expedited development of a coal mine and mine-mouth coal-fired power plant and which is further enhanced by the now formal relationship between the Korean Government owned Korean East - West Power Co. Ltd. ("EWP")  and Kibo. In this relationship the parties have entered into a formal MOU which states the parties' respective commitments towards the joint development of the Rukwa Coal to Power Project ("RCPP"), where EWP will be responsible for developing and operating the power generation side of the RCPP and Kibo will be responsible for developing and operating the mining side of the RCPP.

 

Kibo's objective is to build shareholder value in a sustainable manner.  This objective will be pursued primarily through active exploration of its own projects and by using the Company's experience in Tanzania to acquire attractive exploration and development assets on competitive terms that can be moved swiftly up the value curve by using the Company's own skills base whilst also seeking to benefit from strategic collaborative relationships with industry leaders who have special skills and competencies within their chosen fields of focus.  Kibo will undertake continual risk assessment of its projects and take whatever actions it believes are necessary to ensure that these risks are mitigated.

 

Review by Qualified Person

 

The information in this announcement that relates to the Imweru and Lubando mineral resources is taken from reports titled "Technical Report on the Imweru property (Updated), Mwanza, Tanzania" dated March 1, 2010 and "Technical Report on the Lubando property, Mwanza, Tanzania" dated 31^st August 2009" (the "Reports") Both Reports are NI 43-101 compliant and were prepared for Great Basin Gold Rusaf Gold Limited by Nathan Eric Fier C.P.G., P.Eng. Market Director for EBA Engineering Consultants Ltd and a Senior Mining Consultant. Mr. Fieris registered as a Certified Professional Geologist with the American Institute of Professional Geologists, Registration No 10062, and a professional Engineer in British Columbia, Canada Registration No. 135165.He has extensive experience in the evaluation and reporting of Archaean Gold projects. The Company's Exploration Director, Noel O'Keeffe has reviewed the Reports and the references to them in this announcement.

 

Johannesburg

11 September 2013

 

Corporate and Designated Adviser

River Group