Tanzania focused mineral exploration and development company Kibo Mining and Australia-based Lake Victoria Gold plan to consolidate their respective Imweru and Imwelo gold projects in Tanzania.
The companies on Thursday signed a memorandum of understanding to establish the terms and conditions under which they intend to amalgamate the gold projects by vending them into a new company (Newco).
The parties expected to sign a definitive agreement by June 30. Kibo CEO Louis Coetzee would be executive chairperson of the Newco, while Noel O’Keeffe and Louis Scheepers from Kibo would also serve on the Newco board.
Lake Victoria would be represented on the board by Seth Dickinson as CEO of the Newco, while Bjorn Zikarsky would be FD. The combined project would have a resource base of some 755 000 oz of gold.
“Amalgamation of the two projects will establish a project with a significant gold resource with the added strategic advantage of an existing mining right and the opportunity to pursue near-term production.
“At a resource level, we believe the combined project can reach more than a one-million-ounce resource.
This view is based on the resource expansion potential identified in the latest Imweru competent persons report [which shows that] the Imweru resource can be increased with a further 40% to 80% through an already defined third-phase exploration programme,” commented Coetzee.
He added that the combination of the two projects also provided potential to achieve production of 100 000 oz/y of gold.