Mbeya Coal to Power Project Update

RNS Number : 2881L

Kibo Mining Plc

11 January 2016

 

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")

 

11 January 2016

Mbeya Coal to Power Project - Finalizing Memorandum of Understanding with TANESCO on Power Purchase Agreement

Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX: KBO), the Tanzania focussed mineral exploration and development company, is pleased to announce that it is busy finalizing a Memorandum of Understanding ("MOU") with Tanzania Electric Supply Company Limited ("TANESCO"), on a Power Purchase Agreement ("PPA") for the Mbeya Coal to Power Project ("MCPP").

Over the past twelve months Kibo has been engaged in a very constructive dialogue with TANESCO and the Tanzanian Ministry of Energy and Minerals ("MEM"). During this process the parties identified an agreed set of principles to guide and direct the development of a PPA for the MCPP. These principles seek to recognise, balance and protect the interests of all MCPP stakeholders in a manner that ensures the best interests of the MCPP are served at all times. This set of principles will be incorporated in an official MOU with TANESCO to serve as the reference framework within which the parties will jointly develop and implement an appropriate PPA for the MCPP.

Louis Coetzee, CEO of Kibo Mining, said: "The MCPP continues to make significant progress, with this latest breakthrough being one of the most important milestones in the development of the MCPP to date. Finalizing critical commercial arrangements on the MCPP, to ensure optimal value creation and realization on the Company's flagship asset, is crucial at this stage of the project's development. This announcement also shows that the Company is diligently and successfully attending to the MCPP's key commercial development objectives. These efforts are in turn strongly supported by the ongoing technical feasibility work that is rapidly advancing in parallel.

Kibo is continuing to progress the final phases of the MCPP Definitive Feasibility Study with confidence and significant momentum. We have every reason to believe that we will be able to conclude the MOU in the very near future and that we will complete all remaining feasibility work on time and in doing so also deliver the Bankable Feasibility Study for the integrated MCPP on schedule."

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
Oliver Morse	[phone]	RFC Ambrian Limited	Nominated Adviser on AIM
Daniel Thöle / Anna Legge	[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. 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 Rukwa, which has a significant JORC compliant defined resource (See Table 1 below), and is developing a 250-350MW 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 Coal-Power interim study report to be released in the near term. On 20^th 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 projects with a 550,000oz JORC compliant gold Mineral Resource at Imweru Project (See Table 2 below) and a 168,000oz NI 43-101 compliant gold Mineral Resource at the Lubando Project (See Table 3 below) in which the Company holds a 90% attributable interest. 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 prioritised 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 recognises 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

11 January 2016

Corporate and Designated Adviser

River Group

 

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