Kibo Mining (LON:KIBO), the Tanzania focused mineral exploration and development company, has signed an advisory engagement letter with Absa Bank/Barclays Bank laying out the scope of work and terms under which it will act as new financial adviser to the company on the Mbeya coal to power project.
The scope of work in the mandate requires the adviser to assist in delivering the project to a successful Financial Close by completing amongst others, the following:
- develop a financial model for the Project with the assistance of the Company and its technical advisors and partners
- assist the Company in the negotiation, review and finalization of all agreements pertaining to the MCPP including, inter alia, the power purchase agreement, EPC-agreement, O & M agreement and grid connection agreement
- develop a comprehensive and optimum funding structure for the project in cooperation with the Company and its advisors, and to implement it by soliciting and negotiating with potential lenders and/or equity providers sufficient funding on optimal terms to bring the project to successful Financial Close.
Chief executive Louis Coetzee said: "We are extremely pleased with having ABSA / Barclays on board as the new financial advisor to the MCPP on the terms outlined above. ABSA/Barclays will replace our existing financial advisor, Standard Bank for the very important financial close phase of the MCPP.
"We are glad to report that the transition to ABSA will be seamless and will not result in any delay or additional budget cost towards completion of the Integrated Bankable Feasibility Study for the project. We are looking forward to benefiting from ABSA/Barclays' impressive record in bringing projects similar to the MCPP to successful financial close.
"The fact that ABSA/Barclays are prepared to take an equity stake in the MCPP in lieu of the standard cash retainer fee, on completion of the project, not only helps with our cash flow in the short to medium term, but also demonstrates its strong confidence and belief in the project.
"Together with our recently announced agreement with SEPCO III, appointment of Norton Rose Fulbright as legal advisers to the MCPP and MOU with GE, the addition of ABSA/Barclays to our team of advisors and partners represents another key step in moving the project towards successful financial close."
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The sector's biggest risers were Aurum Mining (LON:AUR) and Kenmare Resources (LON:KMR) - up by more than 19% and over 16.6% respectively in late trading. The biggst fallers were Horizonte Minerals (LON:HZM), Landore Resources ( LON:LND) and Coal of Africa (LON:CZA) - down by more than 5.5%, over 5.1% and over 5% respectively.
(LON:AUR) Aurum Mining PLC share price was +0.2p at 1.25p
(LON:BEM) Beowulf Mining PLC share price was 0p at 4.25p
(LON:BKY) Berkeley Energia Ltd share price was -0.5p at 49p
(LON:CEY) Centamin PLC share price was +3.25p at 147.85p
(LON:CHL) Churchill Mining PLC share price was -0.5p at 26.25p
(LON:CZA) Coal of Africa Ltd share price was -0.16p at 3.02p
(LON:FDI) Firestone Diamonds PLC share price was 0p at 45.25p
(LON:FRES) Fresnillo PLC share price was +83p at 1796p
(LON:GEMD) Gem Diamonds Ltd share price was +2.63p at 122.63p
(LON:HOC) Hochschild Mining PLC share price was +19.5p at 288.5p
(LON:HZM) Horizonte Minerals PLC share price was -0.13p at 2.13p
(LON:KIBO) Kibo Mining share price was -0.13p at 8.88p
(LON:KMR) Kenmare Resources PLC share price was +37.5p at 337.5p
(LON:LND) Landore Resources Ltd share price was -0.25p at 4.6p
(LON:VED) Vedanta Resources PLC share price was +34.75p at 552.75p