Kibo Mining Plc announced Sept. 23 that the consolidation of its Tanzanian gold interests will involve the Imweru and Lubando projects but not Lake Victoria Gold Ltd.'s Imwelo property as previously envisaged. Lake Victoria did not meet some of the conditions set in the agreement that was first announced in June.
The new deal will see the reverse takeover of London-listed Opera Investments Plc and the business, renamed Katoro Gold Mining Plc. Kibo will receive 61 million Opera shares at 6 pence each, thus injecting £1.2 million into Katoro.
Katoro will then move to the AIM segment of the London Stock Exchange from the main market. The board will initially be made up of three directors from Kibo and two from Opera.
The gold projects of the AIM-listed entity will comprise Kibo's Imweru and Geita East tenements. Geita East contains the Lubando project, located approximately 70 kilometers east of Imweru, and has a NI 43-101 compliant resource of 2.6 million tonnes grading 2 g/t of gold for a total 168,300 ounces of gold. Combined with Imweru's resource, that makes a total of about 700,000 ounces.
Kibo still plans to complete a definitive feasibility study on Imweru and obtain a mining right by the third quarter of 2017. Mine commissioning is to start around mid-2018.