TIDMKIBO
RNS Number : 9370N
Kibo Mining Plc
01 November 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:KBO
ISIN:IE00B97C0C31
("Kibo" or "the Company")
01 November 2016
Kibo Receives Final Commercial Bids for the Mbeya Coal to Power
Project EPC and OEM Contracts and Submits Mining Right Application
for Mbeya Coal Mine
Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX:
KBO), the Tanzania focused mineral exploration and development
Company, is pleased to announce that the final commercial bids for
the Mbeya Coal to Power Project ("MCPP") EPC contract and OEM
contract were received on 31 October 2016. The Company has also
submitted its mining right application for the Mbeya Coal Mine.
SEPCO III and General Electric ("GE") were required to submit
their final commercial bids for the MCPP EPC and OEM contracts by
no later than 31 October 2016. Tractebel Engineering ("TE") will
now subject both bids to a stringent benchmark that was previously
developed by TE, to determine whether the bids comply with
international best standards, practice and price as well as
specific conditions that were stated in the respective bid
specifications.
The benchmarking process will be completed over the next three
weeks, where after the Company and its technical, financial and
legal advisors will engage SEPCO III and GE in a final round of
negotiations by the beginning of December 2016. The signing of the
final EPC and OEM contracts is currently scheduled for the end of
December 2016.
Receipt of the final EPC and OEM commercial bids also enabled
the Company to advance two other critical work streams of the MCPP
development process:
-- The integrated financial model for the MCPP and the
Integrated Bankable Feasibility Study can now be finalized; and
-- Submission of the mining right application for the Mbeya Coal
Mine - submitted on 31 October 2016
With the above work streams completed, by the end of December
2016 the MCPP will be fully prepared and ready to transition into
full funding mode, provided that the Government of Tanzania has by
then completed the policy review process pertaining to energy
projects, which will allow the MCPP to proceed with the conclusion
of a Power Purchase Agreement for the MCPP.
Louis Coetzee, CEO of Kibo Mining, said: "We have achieved
significant progress at the MCPP in 2016 and by the end of the year
we will have met all of its ambitious 2016 development targets,
albeit that not all were met within the original target dates, in
spite of limited financial resources as well as delays caused by
policy reviews and changes in Tanzania. The MCPP is now
independently recognized as a robust, well-advanced project. This
is best demonstrated in the significant strategic partnerships we
have concluded during the course of the year and most notably in
the fact that the Company was able to fund all development work on
the MCPP during 2016, without a single equity placement.
It is disappointing that we will not be as far advanced with
financial close as previously anticipated, due to the fact that we
cannot proceed with the finalization of the power purchase
agreement, until such time as the Tanzanian Government has
completed its policy review process. We are, however in constant
discussion with Government on this matter and we have received
continued co-operation and re-assurance that we will be able to
make up for the time lost during the policy review process. Due to
this delay we will have to reschedule certain activities to ensure
that the MCPP development timeline is not compromised. At this
time, we do however not deem it necessary to adjust the timeframe
within which the Company intends to fund, construct and commission
the MCPP. This rescheduling process is currently ongoing and cannot
be finalized until completion of the policy review process, which
is expected to be completed very soon.
Due to the significant advances made during 2016, bolstered by
strategic partnerships with SEPCO III and GE amongst others, the
MCPP now holds enough critical mass allowing it to absorb delays
and obstacles without losing momentum or focus."
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
--------------------- -------------- -------------------- ----------------------
Jon Belliss +44 (0) 207 Beaufort Broker
382 Securities
Limited
8300
--------------------- -------------- -------------------- ----------------------
Oliver Morse +61 8 9480 RFC Ambrian Nominated Adviser
2500 Limited 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
01 November 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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