TIDMKIBO
RNS Number : 8246C
Kibo Mining Plc
20 April 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")
20 April 2017
Kibo Signs Memorandum of Understanding with Mbeya Cement i.r.o.
of Strategic Collaboration and Reciprocal Commodity Supply
Arrangements
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 signed a strategic
Memorandum of Understanding with Mbeya Cement Company LTD ("Mbeya
Cement"), to develop a strategic regional collaboration and
reciprocal supply of materials agreement.
Over the past months the Company and Mbeya Cement have
identified various areas in which they believe they can collaborate
towards the socio-economic benefit of the Mbeya and Songwe regions
as well as for their own commercial objectives. After identifying
the various areas of possible collaboration, Kibo and Mbeya Cement
have committed their respective companies towards achieving these
benefits by agreeing and signing a strategic Memorandum of
Understanding ("MOU"). The MOU will guide and govern a process
whereby the parties will use their reasonable commercial endeavours
to procure definitive agreements that will ensure fairness both in
respect of product pricing and specific quantities, and will also
make provision for market conditions to procure a fair commercial
relationship in which all parties share in the risks and benefits
of prevailing market conditions. Collaboration / commercial
arrangements / agreements will be pursued in respect of the
following:
-- Discussions with regional development partners including
government agencies, NGO's, community stakeholders and the private
sector regarding an optimal roadmap to give effect to policies in
respect of regional socio-economic and related development programs
and projects;
-- Exclusive coal supply agreement in respect of coal produced
from the Mbeya Coal Mine, to supply coal to Mbeya Cement, subject
to guaranteeing specified quality and quantity specifications from
Mbeya Cement;
-- A definitive supply or collaboration or contract mining or
similar agreement in respect of limestone to meet lime requirements
of both the Mbeya power station and Mbeya Cement;
-- Definitive supply agreement to supply fly ash produced from
the Mbeya Power Plant to Mbeya Cement;
-- Definitive electricity supply agreement to supply electricity
to Mbeya Cement in respect of electricity produced from the Mbeya
Power Plant; and
-- Definitive supply agreement either directly with Mbeya Coal
or with its contractors in respect of cement produced by Mbeya
Cement for use in the construction of the Mbeya Coal Mine and Mbeya
Power Plant.
Louis Coetzee, CEO of Kibo Mining, said: "We are very pleased
with the Mbeya Cement MOU. This MOU constitutes our very first step
towards implementation of the broader MCPP regional and local
development objectives; our first commercial diversification
opportunity in as far as coal supply agreements are concerned,
other than to the Mbeya Power Plant. It also marks the first direct
electricity supply agreement opportunity outside commitments within
the PPA.
Kibo is currently involved in various other similar negotiations
/ initiatives towards establishing the MCPP's commercial role as a
critically important regional socio-economic development catalyst.
As stated in previous announcements, the MCPP fulfils a dual role
as strategic national energy supplier on the one hand and as a
pivotal socio-economic development agent on the other.
We are very excited to have Mbeya Cement as a partner and we are
looking forward to working together to transform the Songwe and
Mbeya regions into a significant economic development hub in East
Africa"
Ilse Boshoff, CEO of Lafarge Tanzania said, "We are very excited
with the partnership that we have with the Kibo and this gives us
mutual benefits in leveraging our key strengths whilst supporting
the government and communities at large.
We, Lafarge Tanzania are a part of a big Group - LafargeHolcim
that is leading the world in producing construction solutions to
meet different needs. LafargeHolcim believes in providing the World
what really matters; from housing to infrastructure, Mines to
customized energy solutions like what we have signed for with Kibo
Mining Plc."
About Mbeya Cement / Lafarge Tanzania
Mbeya Cement was acquired by Lafarge in the early 2000. It was
previously fully owned by the Government of Tanzania.
Lafarge merged with Holcim and formed LafargeHolcim Group in
July 2015 and has over 180 years of combined experience,
leading-edge technologies and innovations in the building materials
industry to address the challenges of the 21st century.
With presence in 90 countries and more than 2,500 plants, the
most innovative cement, concrete, and aggregates solutions to meet
its customers' needs, and a commitment to health, safety, and
sustainability, the LafargeHolcim Group has the most efficient
business and the best performing operating models driven by very
strong team of talents.
Contacts
Louis Coetzee +27 (0) 83 Kibo Mining Chief Executive
2606126 plc Officer
---------------- ------------- -------------------- --------------------
Andreas +27 (0) 83 River Group Corporate Adviser
Lianos 4408365 and
Designated Adviser
on JSE
---------------- ------------- -------------------- --------------------
Jon Belliss +44 (0) 207 Beaufort Securities Broker
382 8300 Limited
---------------- ------------- -------------------- --------------------
Oliver +61 8 9480 RFC Ambrian Nominated Adviser
Morse 2500 Limited on AIM
---------------- ------------- -------------------- --------------------
Liz Morley +44 (0) 203 Bell Pottinger Investor and
/ 772 2500 Media Relations
Anna Legge
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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 43-101compliant 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.
The Company also has extensive gold focused interests in Lake
Victoria Goldfields of northern Tanzania, including 100% owned
projects with a 515,000 oz. JORC compliant gold Mineral Resource at
the Imweru Project and a 240,000 oz. JORC 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.
The Company's projects are located in the established and gold
prolific Lake Victoria Goldfields 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.
This announcement contains inside information as stipulated
under the Market Abuse Regulations (EU) no. 596/2014 ("MAR").
Johannesburg
20 April 2017
Corporate and Designated Adviser
River Group
This information is provided by RNS
The company news service from the London Stock Exchange
END
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