Kibo Mining has agreed to extend the deadline on which SEPCO III and Kibo had intended to reach agreement over the final amount still due for payment with regard to the Mbeya coal to power project development cost refund.
SEPCO III was given the opportunity to conduct an independent audit of the development costs incurred on the MCPP to date.
Kibo says despite a diligent effort, the time allowed for this work proved to be inadequate given that the costs in question cover a period spanning several financial years.
A new deadline was set for 14 October 2016, when Kibo and Tractebel Engineering will be meeting with SEPCO III in Qingdao, China, to assess and review SEPCO III's progress in preparing the EPC bid for the power component of the MCPP.
Kibo Mining chief executive Louis Coetzee said: "Kibo is very pleased with SEPCO III's performance to date under the revised agreement announced on 25 August 2016, with all work streams related to the preparation of the EPC-bid currently on schedule or slightly ahead of schedule.
"Both parties however underestimated the amount of work involved in conducting the independent audit referred to above. Kibo and SEPCO III subsequently agreed that a delay in finalising this particular element of the agreement was not going to affect either party's commitment and willingness to continue in parallel with the preparation and finalisation of the EPC-bid and it was therefore decided, by mutual agreement, to extend the date for final agreement on this matter."
At 8:41am: (LON:KIBO) Kibo Mining share price was -0.38p at 8.5p