Tanzania players continue share price slide

Kibaran Resources and Black Rock Mining are the latest Perth-based explorers with operations in Tanzania to come out of a trading halt since legislative changes in the African country were announced.

Black Rock shares were 26.7 per cent lower to 4.1 cents a share at the close of trade today, while Kibaran shares fell 10.3 per cent to 13 cents.

Shares in Cradle Resources continued their decline today, closing 19.3 per cent lower to 12.5 cents each, while Orecorp shares were 5.2 per cent lower to 18 cents each.

In a statement, Kibaran said after considering the legislative changes in Tanzania, it remained confident it could develop a banking debt finance structure for its Epanko graphite project as its banking partners had retained their support.

“The company remains confident that it is well positioned to accommodate the new Tanzanian mining provisions in its development plans,” it said.

Black Rock, meanwhile, said it had been advised that a period of industry consultation around the new regulations is expected to start within the coming four weeks, while the final legislation could be put into effect within about three months.

“The company has completed an initial assessment of the potential impact on the Mahenge graphite project preliminary feasibility study of the proposed legislative changes,” it said.

“This assessment is restricted to consideration of the impact of a 16 per cent free-carried interest by the Tanzanian government on the project and an increase in royalty contribution.”

The impact assessment foreshadowed a $US118 million fall n post-tax net present value to $US506 million.

“The company continues to engage with its advisers and stakeholders to further understand the impact of the proposed legislative changes and associated regulations,” it said.