Kibo Mining Plc PPA and Financing Update for African Power Project (8852Q)
September 18 2017 - 2:00AM
UK Regulatory
TIDMKIBO
RNS Number : 8852Q
Kibo Mining Plc
18 September 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: IE00B97C0C31
18 September 2017
Kibo Mining Plc ('Kibo' or the 'Company')
"Moves Closer to Concluding MOU and Securing Project Funding for
the
Mbeya Coal to Power Project"
Kibo (AIM: KIBO; AltX: KBO), the Tanzania focused mineral
exploration and development company, is pleased to announce that it
has made considerable progress in both securing project financing
and progressing the Power Purchase Agreement ('PPA') with
Tanzania's sole energy provider, Tanzania Electric Supply Company
Ltd ('TANESCO') in relation to its advanced Mbeya Coal to Power
Project ('MCPP').
The MCPP is the Company's flagship asset, which entails the
development of the Mbeya Coal Mine, a 1.5Mtpa operation, based on a
defined 120.8Mt coal Mineral Resource, and the Mbeya Power Plant, a
300MW mine-mouth power station. The MCPP is being advanced to
capitalise on the acute energy deficit in Tanzania and the wider
East African region and has received strong support from both the
Government and international corporates. The Company has received
formal Letters of Intent from multiple international EPC/ power
developers and financing conglomerates keen to provide full project
level equity funding for the MCPP. Accordingly, advanced
negotiations with all potential project level investors to
determine the optimal partner(s) are currently underway.
Additionally, the Company's Memorandum of Understanding ('MOU'),
as a precursor to the final PPA with TANESCO, has passed all the
relevant legislative stages and is waiting for final confirmation
from the Attorney General. The Company anticipates updating
shareholders further on progress in this respect in the near
future. The MOU, once signed, will provide a fixed framework within
which the fundamental commercial and technical components of the
PPA will be negotiated and agreed.
Louis Coetzee, CEO of Kibo mining, said: "Throughout the years
we have enjoyed an excellent working relationship with the
Tanzanian Government, and we continue to work successfully under
the new mining framework. Having so many global powerhouses
expressing a keen interest to partner with us is a fantastic
validation of Kibo, the work we've done at the MCPP (which recently
won the General Electric Innovation Award), and the inherent value
of the project. Furthermore, and importantly, their interest
emphasises that international companies have a continuing belief in
Tanzania as an attractive investment destination. With the final
negotiation of the PPA approaching, full Feasibility Studies
complete and development finance on its way to being secured, this
nationally significant project is reaching a tipping point that I
believe will see stakeholders rewarded."
**ENDS**
For further information please visit www.kibomining.com or
contact:
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
Jon Belliss +44 (0) 207 Beaufort Broker
382 8300 Securities
Limited
Andrew Thomson +61 8 9480 RFC Ambrian NOMAD on AIM
2500 Limited
Hugo de Salis +44 (0) 207 St Brides Investor and
/ Priit Piip 236 1177 Partners Media Relations
Ltd Adviser
Notes to editors:
Kibo Mining is listed on the AIM market in London and the AltX
in Johannesburg. Kibo Mining is focused on exploration and
development of mineral projects in Tanzania, and controls a large
mineral rights portfolio in Tanzania.
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.
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's projects are located in central Tanzania and in
the Mtwara Corridor in southern Tanzania where the Government has
prioritized infrastructural development attracting significant
recent investment in coal and uranium. Kibo Mining 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. Kibo Mining recognises the potential to enhance the quality
of life and opportunity for Tanzanian citizens through careful
development of its projects.
Updates on the Kibo Mining'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
18 September 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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