Kibo Mining Plc Agreement of Development Costs for MCPP (4334M)
October 13 2016 - 2:00AM
UK Regulatory
TIDMKIBO
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 Kibo Mining Chief Executive
2606126 plc Officer
--------------------- -------------- -------------------- ----------------------
Andreas Lianos +27 (0) 83 River Group Corporate Adviser
4408365 and Designated
Adviser on JSE
--------------------- -------------- -------------------- ----------------------
Beaufort
Securities
Limited
Jon Belliss +44 (0) 207 Broker
382
8300
--------------------- -------------- -------------------- ----------------------
RFC Ambrian
Oliver Morse +61 8 9480 Limited Nominated Adviser
2500 on AIM
--------------------- -------------- -------------------- ----------------------
Daniel Thöle +44 (0) 203 Bell Pottinger Investor and Media
/ Anna Legge 772 Relations
2500
--------------------- -------------- -------------------- ----------------------
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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