Wrap Text
Rukwa Coal to Power Project update and Placing for £780,000
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: IE00B61XQX41
(“Kibo” or “the Company”)
24 April 2013
PROJECT UPDATE & PLACING
Korean Government Owned Power Company To Participate in Kibo’s Rukwa Coal to
Power Project
&
Placing for £780,000
The board of Kibo Mining Plc (“Kibo” or the "Company") is pleased to report that, pursuant
to the decision by the Tanzanian Government to include the Company’s Rukwa Coal to
Power Project as a key component of the Tanzanian National Energy Strategy (“NES”), it has
now concluded its selection of Korean East-West Power Co. Ltd (“EWP”) as the preferred
strategic participant in the Rukwa Coal to Power Project and negotiations are currently under
way towards finalizing a formal joint venture agreement between the parties.
The Company has also now received the consent of EWP to disclose:
• EWP’s previously confidential letter of intent dated 21 February 2013 confirming its
intention to participate in the Company’s Rukwa Coal to Power Project; and
• the disclosure by the parties of EWP’s stated intent to the Tanzanian Ministry of
Energy and Minerals (“MEM”) and the Tanzanian Electricity Supply Commission
(“TANESCO”) prior to the Project’s inclusion in the NES.
EWP is a global power producer owned by the Korean Government and it currently owns and
operates power plants in Korea with a total generation capacity of 8,816MW. EWP has
extensive experience and expertise in the power generation business and is currently also
actively engaged in developing and operating power plants in more than 10 countries
including the United States of America, Indonesia, the Philippines and Vietnam.
Placing
The board of Kibo is also pleased to announce that it has received commitments to a share
placing to raise £780,000, before expenses, (the “Placing”) through the issue of 19,500,000
new ordinary shares of Eur0.015 (“Ordinary Shares”) at 4p per share (the “Placing Shares”).
The net proceeds of the Placing will be used by the Company to undertake the scoping study
at Rukwa as the Company looks to complete the joint venture agreement between parties.
Application will be made for the Placing Shares to be admitted to trading on AIM and
dealings are expected to commence on 1 May 2013 (“Admission”). On Admission, the
Company will have 105,592,969 Ordinary Shares in issue
Louis Coetzee, Chief Executive Officer of the Company commented: “We are honoured at
the opportunity to collaborate with our colleagues at EWP in developing the regionally
important Rukwa Coal to Power Project as one of the key components of the Tanzanian
Government’s National Energy Strategy. Their very considerable experience and skills
acquired over many years are vital components required by a successful turnkey power
generation project intended to play an important and even pivotal role in the region. Our
colleagues at EWP are respected industry veterans with a proven understanding of their
chosen fields of operation, and we are honoured to have this opportunity to continue to build
value for our respective shareholders and the people of Tanzania.”
“We are also pleased to have raised further capital in the placing from new and existing
investors, which allows us to progress the scoping study at Rukwa as we look to conclude the
joint venture, as well as provide additional working capital to the Company.”
Louis Coetzee +27 (0)83 2606126 Kibo Mining plc Chief Executive Officer
Andreas Lianos +27 (0)83 4408365 River Group Corporate Adviser and
Designated Adviser on JSE
Jon Belliss +44 (0) 20 3216 XCAP Joint Broker
2630
Stuart Laing +61 8 94802500 RFC Ambrian Nominated Adviser on AIM
Limited
Matt Beale +44 (0)7966 389196 Fortbridge Public Relations
Updates on the Company’s activities are regularly posted on its website
www.kibomining.com
General Background & Strategy
Kibo was established in early 2008 to explore and develop mineral deposits in Tanzania, East
Africa and was admitted to AIM in London on 27 April 2010 and AltX in Johannesburg on
30 May 2011. The Board of Kibo is composed of professionals whose experience include
mineral exploration, mine development, mining finance, tax, law, mergers and acquisitions,
and financial control of public companies. It is supported by a competent and motivated
Tanzanian staff that operates from Kibo's operations office in Dar es Salaam.
The mineral assets of the Company comprise five projects areas in Tanzania - Haneti (nickel,
PGE and gold), Morogoro (Gold), Lake Victoria (Gold), Rukwa (Coal) and Pinewood (Coal
& Uranium).
The Haneti project is the subject of a joint venture with Brazilian Votorantim Metais
Participações Ltda, a member of Votorantim Group. The Rukwa and Pinewood projects are
situated close to the Mtwara Corridor, an area where the Tanzanian Government has
committed to significant infrastructure development and which has seen recent multi-million
dollar investment in coal and coal-fired power stations and uranium exploration.
The Rukwa project is substantially more advanced than Kibo’s existing exploration projects,
with a significant Mineral Resource of thermal coal already defined. The project enjoys
strong support expressed by the Tanzanian Government for the expedited development of a
coal mine and mine-mouth coal-fired power plant, and is further enhanced by the recent
selection of Korean Government owned Korean East-West Power Co. Ltd (“EWp”) as
Kibo’s development Partner for the Rukwa Project.
Kibo's objective is to build shareholder value in a sustainable manner. This objective will be
pursued primarily through active exploration of its own projects and by using the Company's
experience in Tanzania to acquire attractive exploration and development assets on
competitive terms that can be moved swiftly up the value curve by using the Company’s own
skills base whilst also seeking to benefit from strategic collaborative relationships with
industry leaders who have special skills and competencies within their chosen fields of focus.
Kibo will undertake continual risk assessment of its projects and take whatever actions it
believes are necessary to ensure that these risks are mitigated.
Johannesburg
24 April 2013
Corporate and Designated Adviser
River Group
Date: 24/04/2013 04:26:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
