Mbeya Coal to Power Project ("MCPP") - Update

RNS Number : 6261O

Kibo Mining Plc

22 August 2017

 

Kibo Mining Plc (Incorporated in Ireland)

(Registration Number: 451931)

(External registration number: 2011/007371/10)

Share code on the JSE Limited: KBO 

Share code on the AIM:KIBO

ISIN:  IE00B97C031

("Kibo" or "the Company")

 

22 August 2017

Mbeya Coal to Power Project ("MCPP") - Update

Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX: KBO), the Tanzania focused mineral exploration and development Company, is pleased to provide the following update following the Company's RNS dated 26 July 2017:

·    An updated MOU, in reply to an official instruction by the Tanzanian Ministry of Energy and Minerals ("MEM"), to the Company and TANESCO to prepare a final Memorandum of Understanding that will govern the further development of the MCPP in general and the Power Purchase Agreement ("PPA") in particular, has been duly submitted as instructed. A version of the MOU approved for execution is expected shortly, subject to any further request(s) for clarification that may be received;

·    The Company has progressed discussions with various internationally recognized infrastructure investors that had formally expressed interest in an equity investment in the MCPP.  Formal negotiations with these groups will be undertaken over the coming weeks, with the objective of working towards finalizing a comprehensive funding arrangement that will satisfy the MCPP equity funding requirement; and

·    The Company did not receive any further clarification requests from the Tanzania National Environmental Management Council ("NEMC") over the past weeks with regard to the MCPP Environmental & Social Impact Assessment ("ESIA") and final certification is expected shortly

Louis Coetzee, CEO of Kibo Mining, said: "Over the past two months we have seen a significant increase in momentum in all the MCPP work streams and from the above update it is clear that this trend will continue for the foreseeable future. The Company has an extremely busy and exciting period ahead of it".  

Contacts

Louis Coetzee	[phone]	Kibo Mining plc	Chief Executive Officer
Andreas Lianos	[phone]	River Group	Corporate Adviser and Designated Adviser on JSE
Jon Belliss	[phone]	Beaufort Securities Limited	Broker
Andrew Thomson	[phone]	RFC Ambrian Limited	Nominated Adviser on AIM
Liz Morley / Molly Stewart	[phone]	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.  Kibo Mining is focused on exploration and development of mineral projects in Tanzania, and controls a large mineral rights portfolio in Tanzania. 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 43-101compliant defined resource, and is developing a 250-350 MW mouth-of-mine thermal power station, the Mbeya Coal to Power Project ("MCPP"), previously called the Rukwa Coal to Power Project ("RCPP"), with an established management team that includes ABSA / Barclays as Financial Advisor. Kibo has completed a Coal Mining Definitive Feasibility Study and a Power Pre- Feasibility Study for the Mbeya project and has recently announced the completion of an Integrated Bankable Feasibility Study report for the project. On 25 August 2016, Kibo signed an Agreement with China based EPC contractor SEPCO III granting it the right to become the sole bidder for the EPC contract to build the power plant component of the MCPP in exchange for SEPCO III refunding 50% of the development costs incurred by Kibo to date on the project. Kibo has already received the first tranche of this funding in the amount of US$1.8 million on the 5th September 2016 and signed an EPC contract with SEPCO III on the 19th December 2016.

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's projects are located in central Tanzania and in the Mtwara Corridor in southern Tanzania where the Government has prioritized infrastructural development attracting significant recent investment in coal and uranium. Kibo Mining 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. Kibo Mining recognizes the potential to enhance the quality of life and opportunity for Tanzanian citizens through careful development of its projects.

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

This announcement contains inside information as stipulated under the Market Abuse Regulations (EU) no. 596/2014 ("MAR").

Johannesburg  22 August 2017

Corporate and Designated Adviser River Group

 

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