Kibo to sell nickel subsidiary in £200,000 all-share deal with Katoro

KIBO Mining is to sell its nickel prospect to Katoro Gold in an all share transaction that will focus the UK-listed company on its three coal to power projects in sub-Saharan Africa. The firm has also subscribed for shares in Katoro which gives it control of the entity.

“Thanks to our experience in the sector and close relationships with international development partners, including General Electric and SEPCO III, we are becoming a preferred partner for strategic power projects in the region,” said Louis Coetzee, CEO of Kibo Mining in a statement to the Johannesburg Stock Exchange.

The terms of the transaction with Katoro Gold is that Kibo will sell its nickel subsidiary, Kibo Nickel, for about 15.4 million shares in Katoro at a price of 1.3 pence per share valued the total deal at £200,000. The separate share subscription sees Kibo buy 5.8 million Katoro Gold shares for 1.3p/share which gives it an interest of 50.43% in the company.

“Going forward, our full focus will be on developing our initial three energy projects and delivering value to shareholders by capitalising on the acute power shortage in the [sub-Saharan] region,” said Coetzee.