TIDMKIBO
RNS Number : 5324K
Kibo Mining Plc
22 September 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")
22 September 2016
Kibo Signs Financial Advisory Mandate Letter with ABSA /
Barclays
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 an advisory
engagement letter (the "Mandate") with Absa Bank Limited / Barclays
Bank Limited (the "Advisor") laying out the scope of work and terms
under which it will act as new financial advisor to the Company on
the Mbeya Coal to Power Project ("MCPP" or the "Project").
The scope of work in the Mandate requires the Advisor to assist
in delivering the Project to a successful Financial Close by
completing amongst others, the following:
-- develop a financial model for the Project with the assistance
of the Company and its technical advisors and partners;
-- assist the Company in the negotiation, review and
finalization of all agreements pertaining to the MCPP including,
inter alia, the power purchase agreement, EPC-agreement, O & M
agreement and grid connection agreement; and
-- develop a comprehensive and optimum funding structure for the
project in cooperation with the Company and its advisors, and to
implement it by soliciting and negotiating with potential lenders
and/or equity providers sufficient funding on optimal terms to
bring the project to successful Financial Close.
The Company has been successful in negotiating a minimal cash
retainer fee in return for granting the Advisors equity call
options of 3.5% of the total share capital of Mbeya Development
Company Ltd (the "Project Company") ("Advisor Options"). The terms
of the Advisor Options will be formalized in an option agreement
within three months of the commencement date of the Mandate. The
option agreement will provide for shares to be issued ("Call Option
Shares") and the Advisor Options to be held in trust until the
exercise date. It will also include a provision for the Advisors to
be issued further shares to maintain its holding at 3.5% in the
event of further share issues in the Project Company. The exercise
date of the Advisor Options will be no earlier than 18 months after
completion and commissioning of the Project., The option agreement
will include a mechanism for release of the rights of the Advisor
to the Call Option Shares on the exercise date, subject to payment
of an amount equal to the value of the Call Option Shares
calculated on the exercise date. The valuation of the call options
will be calculated based on to the Net Present Value of the
Project.
The Mandate also provides for the Company, at its sole election,
to suspend payment of the retainer fee for one month or longer in
the event of project delays. The Company will have the right to
exercise this right twice during the period in which the Mandate is
in force.
Louis Coetzee, CEO of Kibo Mining, said: "We are extremely
pleased with having ABSA / Barclays on board as the new financial
advisor to the MCPP on the terms outlined above. ABSA / Barclays
will replace our existing financial advisor, Standard Bank for the
very important financial close phase of the MCPP. We are glad to
report that the transition to ABSA will be seamless and will not
result in any delay or additional budget cost towards completion of
the Integrated Bankable Feasibility Study for the project. We are
looking forward to benefitting from ABSA / Barclays' impressive
record in bringing projects similar to the MCPP to successful
financial close.
The fact that ABSA / Barclays are prepared to take an equity
stake in the MCPP in lieu of the standard cash retainer fee, on
completion of the project, not only helps with our cash flow in the
short to medium term, but also demonstrates its strong confidence
and belief in the project.
Together with our recently announced agreement with SEPCO III,
appointment of Norton Rose Fulbright as legal advisers to the MCPP
and MOU with GE, the addition of ABSA / Barclays to our team of
advisors and partners represents another key step in moving the
project towards successful financial close."
About ABSA / Barclays
Absa Bank Limited (Absa) is a wholly owned subsidiary of
Barclays Africa Group Limited, a JSE listed company which is
currently 50.1% owned by the UK's Barclays Bank Plc. ABSA's
corporate and investment banking business has successfully provided
advice and structured finance to a number of major energy projects
across Africa in recent years for both governments and private
developers.
Contacts
Louis Coetzee +27 (0) 83 2606126 Kibo Mining Chief Executive Officer
plc
------------------- ---------------------- ---------------------------- ----------------------------
Andreas +27 (0) 83 4408365 River Group Corporate Adviser and
Lianos Designated
Adviser on JSE
------------------- ---------------------- ---------------------------- ----------------------------
Jon Belliss +44 (0) 207 382 Beaufort Securities Broker
Limited
8300
------------------- ---------------------- ---------------------------- ----------------------------
Oliver Morse +61 8 9480 2500 RFC Ambrian Nominated Adviser on
Limited AIM
------------------- ---------------------- ---------------------------- ----------------------------
Daniel Thöle +44 (0) 203 772 Bell Pottinger Investor and Media
/
Anna Legge 2500 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 300 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 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 5(th) September 2016
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 TBC
22 September 2016
Corporate and Designated Adviser
River Group
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCUUVVRNRAKURR
(END) Dow Jones Newswires
September 22, 2016 02:01 ET (06:01 GMT)
Kibo Energy (LSE:KIBO)
Historical Stock Chart
From Mar 2024 to Apr 2024
Kibo Energy (LSE:KIBO)
Historical Stock Chart
From Apr 2023 to Apr 2024