The deal will include the Rukwa coal project near the southern town of Mbeya and a portfolio of licences prospective for both uranium and coal.

Transactions still to be finalised will require Mzuri Energy Holdings and Mayborn Resources Investments to issue no less than a 51% stake in the African assets to Kibo’s Morogoro Gold subsidiary.

Kibo chief executive Louis Coetzee said the move to embrace coal properties was an attempt to expand and diversify the explorer-developer in a highly prospective region.

“This is part of a broader strategic decision by the company to combine aggressive exploration within Kibo’s current portfolio with the active pursuit of suitable acquisitions to build and develop a multi-commodity exploration portfolio of more advanced exploration project opportunities, in addition to our current gold and base metal work programs,” he said.

“Through these acquisitions, the company increases its foothold in Tanzania, a region that is on the radar of a substantial number of investors and major industrial groups in Asia and North America.”

Kibo claims to have access to one of the largest mineral rights portfolios in Tanzania, spanning three gold and nickel projects.