TIDMKIBO
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
+27 (0) 83 2606126 Kibo Mining Chief Executive Officer
Louis Coetzee plc
--------------------- ---------------------- --------------------------- ---------------------------------
Corporate Adviser and
Andreas Lianos +27 (0) 83 4408365 River Group Designated Adviser on
JSE
--------------------- ---------------------- --------------------------- ---------------------------------
Beaufort Securities
Jon Belliss +44 (0) 207 382 Limited Broker
8300
--------------------- ---------------------- --------------------------- ---------------------------------
RFC Ambrian
Oliver Morse +61 8 9480 2500 Limited Nominated Adviser on
AIM
--------------------- ---------------------- --------------------------- ---------------------------------
+44 (0) 203 772
Daniel Thöle 2500 Bell Pottinger Investor and 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 43-101 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
This information is provided by RNS
The company news service from the London Stock Exchange
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