Dar es Salaam : Metal Tiger PLC and Kibo Mining PLC on Wednesday said they have formally launched their joint venture in Tanzania to identify potential uranium opportunities, including the development of Kibo’s existing Pinewood uranium portfolio.
The pair formed the venture back in January to explore Kibo’s Pinewood portfolio of uranium assets alongside a separate joint venture to look at Kibo’s gold-prospective Morogoro South project.
On Wednesday, the companies said the joint venture at Pinewood has commenced and work will initially focus on updating a study conducted in 2009 on the potential exploration opportunities in the Pinewood region and across Tanzania.
That study will be updated by the end of October 2015.
“The information provided in the original 2009 report proved extremely useful in the identification of strategic uranium opportunities in Tanzania, and we anticipate this updated report will prove equally valuable,” said Kibo Chief executive Louis Coetzee.
The pair said they are also now considering enhancing the existing Pinewood uranium portfolio by acquiring additional uranium assets.
The Pinewood portfolio is located in the south western corner of Tanzania, between the regional capitals of Iringa, Mbeya and Songea and covers an area of 9,033 square kilometres.
Under the joint venture, Metal Tiger will fund the first USD800,000 of exploration work on the existing portfolio, after which the costs will be split 50/50.
Metal Tiger shares were trading down 1.0% at 0.990 pence per share on Wednesday, whilst Kibo shares were trading down 1.7% to 5.65p.