Under the MoU, Metal Tiger will have to spend $800,000 on project costs, license renewal fees and other maintenance costs, estimated at $100,000 a year, and an agreed exploration work program over three years to gain 50% stake in the joint venture.
Kibo’s portfolio comprises 43 licences, offers, applications and tenders with a combined surface area of 9,033km².
Metal Tiger CEO Cameron Parry said: "The 50/50 joint venture will provide Metal Tiger with the opportunity to add value to, and benefit from, Kibo’s sites with prospectivity for uranium – a strategic metal that the board of Metal Tiger believes should increase in value over the next three years in line with increasing global demand.
"Through its equity shareholding in Kibo, Metal Tiger will achieve exposure to the near-production stage of the mining cycle phase via Kibo’s near-production coal project, as well as gaining exposure to the potential of Kibo’s gold assets in Tanzania."
Metal Tiger also intends to spend £150,000 to acquire 3.67% interest in Kibo’s issued share capital.
Kibo Mining CEO Louis Coetzee said: "The joint venture will allow Kibo to immediately take the company’s Uranium portfolio out of care and maintenance and to restart active exploration work on the portfolio."
Kibo will issue Metal Tiger with warrants over 10,000,000 new ordinary shares which can be exercised within a three-year term at a price of 3p each.
