MCPP and Imweru Gold Project Interim Update

RNS Number : 0878G

Kibo Mining Plc

03 August 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:IE00B97C0C31

("Kibo" or "the Company")

03 August 2016

MCPP and Imweru Gold Project Interim Update

Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX: KBO), the Tanzania focused mineral exploration and development Company provides an interim update on progress at the Company's Mbeya Coal to Power Project ("MCPP") and the Imweru gold project.

MCPP

Work on the MCPP is continuing at pace with all attention and resources focused on completing the Integrated Bankable Feasibility Study ("IBFS") as soon as possible, so that financial close activities can commence. Policy changes currently being considered by the Tanzanian Government which are aimed at improving and simplifying the procurement process for Independent Power Producer ("IPP") projects like the MCPP, may cause a slight delay in completing the IBFS. These delays may be required to allow the Company to incorporate the latest IPP-policy (should any change occur) with regard to Power Purchase Agreements ("PPA") associated with IPP-projects. Productive interaction with the Tanzanian Ministry of Energy and Minerals and TANESCO is continuing, with all parties working diligently towards the development and conclusion of a mutually agreed commercial PPA for the MCPP. Parallel work streams are also progressing well:

·     Environmental and Social Impact Assessment more than 75% complete;

·     Definitive Power Feasibility Study completed with results well above expectations;

·     EPC-contracting process underway and within schedule. In this regard a full EPC specification has already been developed by Tractebel Engineering and the first round of bid discussions with SEPCO III was successfully completed during June, in accordance with the provisions of the existing Joint Development Agreement with SEPCO III. The second round of discussions in this regard, specifically aimed at assessing whether SEPCO III will be able to meet all outstanding conditions precedent to become the preferred EPC-contractor to the MCPP, will take place during the week of 15 August 2016. This process will amongst others include discussions on SEPCO III's investment obligations that must be met before it can become the preferred EPC-contractor to the MCPP;

·     Operation and Maintenance contracting is underway and on schedule, with the process to obtain expressions of interest from leading international O & M service providers successfully completed. Pre-qualification of prospective bidders is currently underway;

·     Definitive Mining Feasibility Study completed, with results well above expectations;

·     EPC and Mining-contracting process underway and within schedule, with excellent responses to requests for budget quotes from prospective bidders. Pre-qualification from prospective bidders now in process;    

·     Statutory certification (licensing and permitting) process on schedule;

Imweru Project

On June 2 the Company signed a Memorandum of Understanding ("MOU") with Lake Victoria Gold LTD ("LVG") in which the two companies agreed to consolidate their respective Imweru and Imvelo gold projects. On July 5 the Company announced a minor unforeseen delay in completing the compliance and legal work required to finalize the definitive agreement which will conclude the transaction contemplated in the MOU. The final component required to satisfy compliance and legal requirements, was a site visit to Imweru and Imvelo, attended by representatives of the Company and LVG respectively, as well as independent technical consultants and financial advisors to the transaction. This site visit was successfully conducted from 26 to 29 July 2016, during which the independent consultants and advisors were able to obtain conclusive independent verification of all technical and legal representations fundamental to the definitive agreement. All outstanding compliance and legal work have now been completed and the Company and LVG are now in a position where they can execute the definitive agreement, upon receipt of the final version thereof from legal counsel. This is expected by no later than 08 August 2016.

Louis Coetzee, CEO of Kibo Mining, said: "We are very pleased with the continued progress at the Company's two main projects. Significant progress has been made on both over the past four months and both projects are continuing to grow in stature and value. We are looking forward to realizing this value over the coming months and further updates will follow shortly."

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 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   

03 August 2016

Corporate and Designated Adviser

River Group

 

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