the bar is open and the bar has been raised, page-129

here the article! almost no mention of NOBLE deal!


Kaboko Mining secures strategic Zambian licence, gains A$1m debt finance
Tuesday, October 02, 2012 by Angela Kean Kaboko Mining (ASX: KAB) has inked a joint venture agreement for an initial 51% interest in the Rockstone Manganese Project, a large scale prospecting licence 120 kilometres north of the company’s Peco Manganese Project in Zambia.

The acquisition is a strategically important and significant addition to Kaboko’s existing Zambian manganese projects, given recent technical results and a broader geological understanding at the Peco Project, which is forecast to become a primary production and processing location.

The company has also secured a A$1 million debt facility with Perth-based investment group Celtic Capital to fund further exploration and complete reverse circulation drilling at its Emmanuel and Peco Projects.

This debt facility will provide Kaboko with interim funding while key regulatory and shareholder approvals are obtained as conditions precedent to the previously announced 10-year manganese ore offtake agreement and US$10 million 30-month secured prepayment debt facility with Noble Resources.

Kaboko is confident that a Notice of Meeting will be issued to shareholders shortly, to allow for a shareholder meeting to approve the Noble transaction in late October/early November.


Mwata Mining JV

The joint venture, known as Mwata Mining, was established to complete further exploration and development work on the Rockstone Project, which covers 980 square kilometres in the Luapula Province of Zambia.

Under the terms of the joint venture agreement, Kaboko’s wholly owned Zambian subsidiary, African Asian Mining Development, has committed to exploration expenditure of A$1 million over 24 months to earn an initial 51% interest.

An option to increase to a 75% interest has also been negotiated on commercial terms.

Exploration activities at the Rockstone Manganese Project are expected to begin in early 2013 with initial systematic mapping of surface outcrops, trenching work as well as geophysical surveys including ground magnetics, aeromagnetics and ground gravity surveys.

A preliminary due diligence review by Kaboko’s in-country management team has identified the project area to be highly prospective for manganese with a number of surface outcrops identified over extended areas.

The addition of the Rockstone Project increases the company’s interests in mining and exploration licences in Zambia by over 35% to 3,700 square kilometres.

Kaboko has lodged all the necessary documentation for the transfer of the large scale prospecting licence to Mwata Mining and is awaiting governmental approvals.


Debt facility

The unsecured A$1m debt facility with Celtic Capital has a term of eight months and is convertible after two months, at Kaboko’s election, into ordinary shares.

Kaboko is proposing to drawdown the facility in full next week, and has paid a fee and interest costs on the facility by way of the issuance of 5.5 million shares and 5 million options with an exercise price of $0.02 and an expiry date of 28 September 2015.

The facility provides the company with the necessary interim funding to commit to the first 5,000 to 10,000 metres of a proposed 27,000 metre reverse circulation drilling program.

Based on the results of the planned drilling program an initial JORC resource is expected to be delineated.


Sinosteel offtake deal

In addition to the offtake agreement executed with Noble, Kaboko has secured an offtake agreement with Chinese major Sinosteel for the export of high quality, high grade lump manganese ore to China.

Sinosteel is China’s current leading importer of manganese ore and a significant importer of iron ore and chrome ore.

Total shipments to Sinosteel of 180,000 tonnes are planned.


Key licence secured

Late last month Kaboko was granted a Certificate of Registration (Investment Licence) by the Zambian Development Agency for two of its subsidiaries, a key part of the company’s planned development of its manganese projects in the region.

Importantly, the fiscal and non-fiscal benefits accompanying the Certificate of Registration are expected to significantly increase the economic potential of Kaboko’s Emmanuel and Peco Manganese Projects when compared to other jurisdictions.

Kaboko has a 51% interest in Mansa Manganese Mining and Zambian Manganese Mining, with the option to increase this holding to 75%.

The subsidiaries hold licences that form part of the Emmanuel and Peco Projects. Impondo Zambia also holds licences that make up the balance of both projects, with Kaboko holding a 75% interest in this subsidiary.

Kaboko has previously confirmed the presence of manganese outcrops with high grades of above 50% across its Zambian projects following a recent technical evaluation to further its partnership with Noble Resources.