TIDMKIBO
RNS Number : 2920A
Kibo Mining Plc
23 March 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
("Kibo" or "the Company")
23 March 2017
Kibo Mining meets all its Q1 2017 Strategic Objectives
successfully
Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX:
KBO), the Tanzania focused mineral exploration and development
company, is pleased to provide a summary update of progress and
activities during Q1 2017.
-- Continued liaison with the Tanzanian Government on the
results of its Integrated Bankable Feasibility Study ("IBFS")
confirmed that the Company is well placed to conclude negotiations
on a Power Purchase Agreement ("PPA") following completion of
Tanzanian Electric Supply Company ("TANESCO") restructuring and
Minister of Energy and Minerals ("MEM") policy changes;
-- Kibo has successfully established significant capacity and
progress on all fronts in preparing for the financial close on the
Mbeya Coal to Power Project ("MCPP") with the able and committed
assistance of its advisors, partners and contractors;
-- The Company has terminated its JVs on early stage projects (Morogoro & Pinewood) and planned rationalisation of its remaining early stage exploration projects to enhance focus of available resources on flagship projects;
-- Vend in of Imweru and Lubando Gold projects via Opera RTO is
in the final stages of completion and subsequent re-admission to
AIM; and
-- Kibo has launched a CSR programme for MCPP.
The Company announced the finalization of the Integrated
Bankable Feasibility Study for the MCPP on the 16(th) January,
following receipt of an integrated financial model for the project
and acceptance by the relevant Tanzanian authorities of the
Environmental & Social Impact Assessments ("ESIA") scoping
reports. This IBFS is a key document as it integrates the results
of all studies to date on the project. The strongly positive
metrics across the operational, technical and financial areas have
enabled Kibo to negotiate successfully towards agreeing a Power
Purchase Agreement with the Tanzanian Government.
The MCPP is now in the final stage of project development prior
to Financial Close which will ensure, inter alia, that it is in
compliance with Tanzanian legislation and latest policy changes.
This process is ongoing and we are working in a close and
productive relationship with the Tanzanian Government, who continue
to show strong support for the MCPP, which is deemed to constitute
an integral part of the Government's strategy to address the
country's power shortages. TANESCO is regularly updated on the
positive MCPP IBFS results and is committed to ensuring that a
final PPA is concluded as soon as possible.
As part of the Company's ongoing rationalization strategy
regarding all its early stage exploration projects, Kibo has
decided to terminate its Morogoro and Pinewood joint ventures by
mutual consent with its JV partner Metal Tiger PLC. The Pinewood
and Morogoro projects together constituted a widely dispersed
portfolio of early stage gold and uranium prospective ground that
no longer fits into the Company's portfolio of more advanced,
development focussed assets.
Over the course of the past two months the Company has made good
progress on its reverse takeover transaction with Opera Investments
Inc. (to be renamed Katoro Gold ("Katoro")) and is now in the final
stages of bringing Katoro to AIM. The objective post re-admission
is to complete a definitive feasibility study at Imweru, with a
view to getting Imweru into production within 18 to 24 months from
the date of readmission of Katoro Gold, with an initial production
target of 50K oz p/a.
During Q1 2017, Kibo also officially launched its corporate
social responsibility programme for the MCPP. In this regard the
Company initiated a project to assist with the refurbishment of
schools within the villages closest to its MCPP project site. The
first phase of this was recently completed, with Kibo handing over
two newly constructed class rooms to the Meheza and Namkukwe
communities in the presence of the district and regional
commissioners for the Songwe Region.
Louis Coetzee CEO, Kibo Mining said "We are very satisfied with
our progress on meeting the Kibo Strategic Objectives for Q1 2017
Progress on finalizing the MCPP PPA remains slower than we had
hoped, but significant progress has been made in recent weeks and
the indications are that this process will now continue to progress
at pace.
Progress on the Opera RTO has also proceeded well and we are
looking forward to completing this transaction shortly and to
commence with the Imweru feasibility study during April 2017.
Contacts
+27 (0) 83 Kibo Mining Chief Executive
Louis Coetzee 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
---------------- ------------ --------------- -------------------
Oliver Morse +61 8 9480 RFC Ambrian Nominated Adviser
2500 Limited on AIM
---------------- ------------ --------------- -------------------
Liz Morely +44 (0) 203 Bell Pottinger Investor and Media
/ Anna Legge 772 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 43-101compliant 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 5(th) September 2016 and signed an EPC
contract with SEPCO III on the 19(th) 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
23 March 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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