Kibo Mining (AIM: KIBO; AltX: KBO) announced on 24th February 2017 that it will cease activities at its Pinewood and Morogoro uranium coal and gold projects with immediate effect.
Both projects are a 50/50 joint Venture between Kibo Mining and Metal Tiger (LON:MTR), a company primarily focused on undervalued natural resource opportunities.
According to the company’s press release, the reason behind this strategic choice is in that both Metal Tiger and Kibo Mining have experienced considerable success in other projects of their business portfolio and this has led to these interests becoming the absolute focus of each company.
The company will relinquish the licenses back to the local authorities.
Metal Tiger’s investment in Botswana has seen a substantial and developing copper/silver discovery and significant progress is being made in the company’s investment in Thailand.
Kibo Mining has substantially advanced its Mbeya Coal to Power Project, as well as its Imweru and Lubando gold projects.
“It is therefore appropriate that both companies focus their efforts, energies and resources on these important core projects and take the steps necessary to reduce non-core investments and activities, including Pinewood and Morogoro, which although worthwhile in themselves, could distract each company from their main commercial purpose”, the press release reads.
Kibo Mining’s CEO Louis Coetzee commented: “The Joint Ventures at Pinewood and Morogoro have not progressed as planned as explained above and although unfortunate, this reflects the need to focus investment correctly in smaller companies with multiple projects.”
Michael McNeilly, CEO of Metal Tiger commented: “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.”
Kibo Mining plc is a Tanzania-based minerals exploration and development company, focused on realising value from the Mbeya Coal to Power Project (MCPP) (formerly known as Rukwa Coal to Power Project) and the Imweru gold project, as well as holding one of the largest exploration land packages in the country with assets spanning coal, gold, uranium and nickel-platinum group metals.
