Kibo Mining Has Now Concluded a Formal Definitive Joint Venture Agreement

Kibo finalises formal strategic joint venture agreement with major Brazilian industrial conglomerate Votorantim Metaís Participações Ltda, the metals, mining and smelting arm of the Votorantim Group, for the further exploration and development of its Haneti Nickel Project.

Kibo Mining plc the Tanzania focused mineral exploration and development company, is pleased to report that it has now concluded a formal definitive joint venture agreement with VOTORANTIM METAIS PARTICIPAÇÕES LTDA a subsidiary of the Brazilian industrial conglomerate Votorantim Group to conduct a joint further exploration work program on its Haneti properties which are prospective for nickel and other base and precious metals.

Salient Features of the Joint Venture
Under the Joint Venture, Votorantim will initially contribute a maximum of GBP 2.7 million over a period of three years ("Initial Period"), to fully fund an agreed work program budget at the Haneti Project. Upon expending the full GBP 2.7 million within the Initial Period, Votorantim will have earned a 50% interest. Once the Initial Period has concluded the parties will continue to contribute equally to the working capital requirements of the Joint Venture. During the Initial Period the JV will carry out exploration activities aiming at the identification of the mineral potential of Haneti, focusing initially on the exploration for nickel and PGEs in the extensive mafic-ultramafic belt, located at the proximity of Dodoma. Work conducted during this period will also aim at establishing an initial early stage JORC compliant mineral resource at Haneti. Following the Initial Period the Joint Venture will consider the further development of the project on the merits of the exploration results achieved.

The Joint Venture is subject to certain administrative conditions precedent only, which the parties have undertaken to conclude within the next 60 days. These include the transfer of the mineral licenses comprising the Haneti Project to a jointly controlled Tanzanian operating company and the registration of a Limited Liability Partnership under English Law through which the parties will fund the 

Commenting on the conclusion of the formal agreement, Mr Louis Coetzee CEO of Kibo said that "We are pleased to be joining forces with our colleagues at Votorantim in seeking to do justice to the very promising Haneti Project both with regard to the commitment of capital as well as to the leveraging of their very considerable experience and skills acquired over many years. They are respected industry veterans with a proven understanding of their chosen fields of operation, and we welcome this opportunity to continue to build value for our respective shareholders and the people of Tanzania."