Source - RNS
RNS Number : 4334M
Kibo Mining Plc
13 October 2016
 

Kibo Mining Plc (Incorporated in Ireland) (Registration Number: 451931)

(External registration number: 011/007371/10) Share code on the JSE Limited: KBO

Share code on the AIM: IBOISIN:IE00B97C0C31

("Kibo" or "the Company")

 

13 October 2016

 

 

Kibo Agrees Development Costs for MCPP and Balance of Funds Refundable to Company

 

 

Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX: KBO), the Tanzania focused mineral exploration and development Company, is pleased to announce that it has reached agreement with SEPCO III on the total direct development cost related to the MCPP ("Mbeya Coal to Power Project"). (See RNS dated 25 August 2016).

 

It was agreed that the direct development cost incurred on the MCPP over the past four years will be considered for determining the final development cost refund amount. After considering all information provided in this regard, the final amount is USD 10,944,071, which was accepted by both parties as a fair reflection of the MCPP development cost over the past four years. Based on this, the total amount refundable to Kibo constitutes an amount of USD 5,497,035, i.e. 50% of the total development cost as per the terms of the Agreement between SEPCO III and the Company (the "Parties") announced on the 25 August 2016. As Kibo has already received an advance of USD 1.8 million, the total outstanding amount payable to Kibo will be USD 3,672,036. The Parties have further agreed that these funds will become payable to Kibo when the MCPP reaches financial close.

 

The agreement on the MCPP development cost refund was reached at a meeting between SEPCO III and Company management this week in China. This meeting coincided with meetings between the Company, SEPCO III, Tractebel Engineering and General Electric ("GE"), at which significant progress was made towards finalizing the EPC and OEM bid proposals related to the EPC- and OEM contracts for the power component of the MCPP.

 

Louis Coetzee, CEO of Kibo Mining, said: "We are very pleased with the outcome of o this week's meetings in China with SEPCO III and GE as well as our MCPP advisors, Tractebel Engineering. We are particularly pleased that we have reached agreement on the MCPP development costs and the balance of funds refundable to the Company.

 

Progress in relation to the finalization of the EPC and OEM bid proposals also exceeded our expectations and marks another major step forward in moving the MCPP towards financial close."

 

 

 

 

 

 

 

Contacts

 

 

 

Louis Coetzee

 

+27 (0) 83 2606126

 

Kibo Mining plc

 

Chief Executive Officer

 

Andreas Lianos

 

+27 (0) 83 4408365

 

River Group

 

Corporate Adviser and Designated Adviser on JSE

 

Jon Belliss

 

+44 (0) 207 382

8300

Beaufort Securities Limited

 

Broker

 

Oliver Morse

 

+61 8 9480 2500

RFC Ambrian Limited

 

Nominated Adviser on AIM

 

Daniel Thöle / Anna Legge

 

+44 (0) 203 772

2500

 

Bell Pottinger

 

Investor and Media Relations

 

Kibo Mining - Notes to editors

Kibo Mining is listed on the AIM market in London and the AltX in Johannesburg. The Company is focused on exploration and development of mineral projects in Tanzania, and controls one of Tanzania's largest mineral right portfolios. Tanzania provides a secure and stable operating environment for the mineral resource industry and Kibo Mining therein.

 

Kibo Mining holds a thermal coal deposit at Mbeya, which has a significant NI 43-101 compliant defined resource, and is developing a 250-350 MW mouth-of-mine thermal power station, the Mbeya Coal to Power Project ("MCPP"), previously called Rukwa Coal to Power Project ("RCPP"), with an established management team that includes Standard Bank as Financial Advisor. Kibo is undertaking a Coal Mining Definitive Feasibility Study and a Power Pre- Feasibility Study for the Mbeya project with an integrated Bankable Feasibility Study report for the MCPP to be released in the near term. On 20th April 2015, Kibo signed a Joint Development Agreement for the completion of the Definitive Feasibility Studies and development of the MCPP with China based EPC contractor SEPCO III.

 

The Company also has extensive gold focused interests including Lake Victoria Goldfields and Morogoro projects. At Lake Victoria, the Company has 100% owned projects with a 550,000 oz. JORC compliant gold Mineral Resource at the Imweru Project and a 168,000 oz. NI 43-101 compliant gold Mineral Resource at the Lubando Project. The Company is currently undertaking a Definitive Feasibility Study on its Imweru Project.

 

Kibo also holds the Haneti Project on which the latest technical report confirms prospectivity for nickel, PGMs, gold and strategic metals including lithium.

 

Kibo Mining further holds the Pinewood (coal & uranium) project where the company has entered into a 50/50 Exploration Joint Venture with Metal Tiger plc.

 

Finally, the Company also holds the Morogoro (gold) project where the company has also entered into a 50/50 Exploration Joint Venture with Metal Tiger plc.

 

The Company's projects are located in the established and gold prolific Lake Victoria Goldfields, the emerging goldfields of eastern Tanzania and the Mtwara Corridor in southern Tanzania where the Government has prioritized infrastructural development attracting significant recent investment in coal and uranium. The Company has a positive working relationship with the Tanzanian government at local, regional and national levels and works hard to maintain positive relationships with all communities where company interests are held. The Company recognizes the potential to enhance the quality of life and opportunity for Tanzanian citizens through careful development of its projects.

 

Updates on the Company's activities are regularly posted on its website www.kibomining.com

 

 

Johannesburg

13 October 2016

Corporate and Designated Adviser
River Group


This information is provided by RNS
The company news service from the London Stock Exchange
 
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