Wrap Text
Management Team and Financial Advisor Appointed to Rukwa Coal to Power Project
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”)
Dated: 8 October 2013
_____________________________________________________________________________
Management Team and Financial Advisor Appointed to Rukwa Coal to Power
Project
____________________________________________________________________________
• Kibo appoints experienced management team to manage and execute Rukwa Coal to
Power project feasibility studies for both the Rukwa Coal Mine and the Rukwa Power
Station
• Standard Bank engaged as Financial Advisor on the Rukwa Coal to Power Project
Introduction
Kibo Mining plc (“Kibo” or the “Company”) (AIM: KIBO; AltX: KBO) the mineral
exploration and development company focused on gold, nickel, coal and uranium projects in
Tanzania, is pleased to announce key internal and external appointments to implement and
manage the three stage Rukwa Development Program (see details below), recently approved
by the Kibo board of Directors. The Rukwa Development Program (RDP) is the product of
extensive consultation and discussion with the Tanzanian Government, East West Power
Company (“EWP”) of Korea and Standard Bank Group (“Standard Bank”) and will be
implemented to accelerate development of its flagship Rukwa Coal to Power project
(“RCPP”).
Management Team
The Rukwa Executive Management Team (“REMT”) has been formed comprising Kibo CEO,
Louis Coetzee and Kibo COO, Louis Scheepers, along with external appointees, Roy Adair
and Casper Van Wyk (See abbreviated CV’s below). Mr. Louis Coetzee will chair the REMT
whilst Mr. Roy Adair will assume the position of Program Executive in the REMT, with
executive responsibility for the implementation and execution of the RDP.
All appointees bring a mix of skills and experience across the fields of executive leadership,
project management, corporate finance and global energy development required to advance the
project as it now enters the feasibility study stage.
Mr Adair has successfully served as CEO of a number of energy companies in the last 20 years
including Hydro Tasmania (Pty) Ltd, Senoko Power Limited and Yallourn energy. In his most
recent role as CEO of Hydro Tasmania (Pty) Ltd, he was responsible for the operation of a $5
billion business in the Tasmanian electricity market. Mr. Van Wyk brings vast experience in
corporate finance and corporate structuring to the REMT.
Financial Adviser Appointment
In addition to the appointment of the REMT, Kibo has entered a 12 month, fixed term
Financial Advisory mandate with Standard Bank, whereby Standard Bank will assist the
REMT with:
• The development and delivery of a financial model for the RCPP; and
• The strategic planning and development of a robust project development and financing
strategy for the RCPP.
The engagement letter also grants Standard Bank an unconditional and irrevocable right of first
refusal to upon completion of the 12 month fixed term mandate:
• Act as Mandated Lead Arranger for any debt financing required by the RDPP and/or
• Act as retained Lead Financial Advisor to the RCPP
Louis Coetzee CEO of Kibo commented today: “Kibo is very pleased with these appointments.
The experience and successful track records of my colleagues on the REMC should greatly
benefit our planned development schedule for the RCPP. Equally pleasing is having access to
Africa’s largest indigenous bank and their energy advisory franchise which we trust will be of
great value to the Project over time.
With the latest appointments, Kibo have now successfully completed what could be viewed as
the most important development phase of the RCPP. This phase, referred to as the grounding
phase, required that a solid foundation be created to guarantee the successful development
and completion of the RCPP and this was duly realized with the following four cornerstones
namely, appropriate coal resource, government support, energy generation partner (EWP)
and financial advisory partner (Standard Bank), now firmly in place.”
Additional Information
Rukwa Development Plan
Stage 1
• Completion of BFS on the coal mine by Dec 2014, which will also include;
o The granting of a Valid Mining Right;
o Evaluation of potential for external sale of coal locally, internationally within
Africa and internationally beyond the African continent; and
o Evaluation of the potential for different use of the coal including for a coal-to-
liquids plant or coal bed methane generation.
• Completion of a pre-feasibility study on the power plant, by Dec 2014 that will include:
o Settling the basic terms of a long form term-sheet as a forerunner to a Power
Purchase Agreement;
o Settling the basic terms of a Fuel Supply Agreement and Ash Removal
Agreement;
o Providing an outline design for the Power Station;
o Securing the land on which the plant will be built; and,
o Arranging the requisite licenses, permits and regulatory approvals;
Stage 2 & 3
Stage 2 of the RCP will comprise all development and construction activities relevant to both
the mine as well as the power plant, with Stage 3 comprising commissioning and operation of
both the Rukwa Coal Mine and Rukwa Power Station.
REMT: Background Information on External Appointments:
Roy Adair
Roy Adair’s successful career has been mainly spent in senior management positions in
utilities in several different countries. In the last 20 years he has held chief executive positions
in several integrated electricity generation and retailing businesses including Hydro Tasmania,
Australia and Senoko Energy, Singapore. Roy is a successful CEO with a track record of
improving the performance of a range of businesses, with a turnover in excess of US$1billion,
across a broad spectrum of key areas ranging from focused business strategies, improved
bottom line performance and effective asset management arrangements to the successful
project management of major capital investment projects and corporate governance.
Roy has worked in several African countries on a variety of energy projects. His experience
of mine-mouth electricity generation assets is of great value to the Rukwa Coal and Power
project. Roy’s extensive experience of the successful delivery of high value capital projects in
different countries is extremely pertinent. His track record as a board director will also be of
value to the project. While having chaired project specific, special purpose companies Roy has
also sat on the boards of several large businesses in both executive and non-executive director
capacities. An economist and qualified accountant he is currently on the board of the
International Hydropower Association and is Deputy Chairman of the Clean Energy Council,
Australia.
Casper Van Wyk
Casper is a chartered accountant who started his professional career with Coopers & Lybrand
in 1991. He also holds an MCom (Computer Auditing & Systems Development) from the
University of Pretoria and an MPhil (Finance) from the University of Cambridge, England.
Casper joined Genbel South Africa Ltd in 1994 as an investment analyst in the underwriting
and corporate finance department. During the next five years he was involved in numerous
structured transactions on behalf of Gensec, with a specific preference for the technology- and
financial service industries. He was involved in some of the first offshore financings in the
South African information technology industry, and has served on the boards of public
companies. He resigned his position at Gensec during January 1999 in order to join the River
Group, a corporate advisory and M&A Boutique. Since 2000 Casper was actively involved in
the resources sector.. As the investment cycle developed during the first decade of the 21st
millennium, he was involved either as advisor or as principal in a number of public- and
private transactions in precious metals, diamonds and a number of industrial minerals. His
experience covers a number of jurisdictions in Africa, Canada, United Kingdom and Australia
amongst others.
Standard Bank
Standard Bank is Africa’s largest bank with a market capitalisation of USD 18 billion and
operates in 18 African countries. Standard Bank’ Tanzanian subsidiary, Standard Bank
Tanzania Ltd (“Stanbic”), routinely advises on and structures finance for public private
partnerships in the country across all business sectors.
Contacts
Louis Coetzee +27 (0)83 2606126 Kibo Mining plc Chief Executive Officer
Andreas +27 (0)83 4408365 River Group Corporate and Designated
Lianos Adviser on JSE
Jon Belliss +44 (0) 20 3216 2630 XCAP Broker
Stuart Laing +61 8 94802500 RFC Ambrian Limited Nominated Adviser on
AIM
Matt Beale +44 (0)7966 389196 Fortbridge Investor Relations
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 competent and motivated a 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 Lake Victoria project covering a gold prospective licence portfolio in Tanzania’s premier
gold mining region, the Lake Victoria Goldfield, been recently enhanced by the addition of
two brownfield gold projects Imweu and Lubando. Both projects have NI 43-101 compliant
total gold resource of approximately 798,000 ounces (total of Measured, Indicated and
Inferred for both projects).
TABLE1: IMWERU MINERAL RESOURCE SUMMARY–BASECASE*
Category Measured Resource Indicated Resource Inferred
Resource (t) - - 17,649,900
Grade (g/t) - - 1.11
Grade (oz/ton) - - 0.032
Total Gold (oz) - - 629,6
*Numbers are rounded. Composites capped at 25g/t gold. Cut-off grade of 0.5g/t gold
based on a gold price of US$850/oz and assumed100% metallurgical recovery .CIM
definitions were followed for Mineral Resources.
TABLE2:LUBANDO MINERALRESOURCE SUMMARY–BASECASE*
East Zone East Zone
Catego West Zone South East Zone North Total
Measured
Measured Resource 107,900 4,880 16,900 54,440 184,150
Grade (g/t) 1.6 2.5 1.72 2.4 1.9
Total Gold (oz) 5,900 400 95 4,340 11,500
Indicated Resource
Indicated Resource 280,710 18,330 61,000 149,350 509,420
Grade (g/t) 1.6 2.2 1.89 2.7 1.9
Total Gold (oz) 14,500 1,300 3,70 13,120 32,600
Inferred Resource
Total Resource (t) 1,090,000 65,470 209,340 535,330 1,900,140
Grade (g/t) 1.2 1.5 3.34 3.1 2.0
Total Gold (oz) 44,550 3,300 22,500 53,900 124,200
*Numbers are rounded. Composites capped at10.85g/tgold. Cut-off grade of 0.5g/t gold
based on a gold price of US$850/oz and assumed100% metallurgical recovery .CIM
definitions were followed for Mineral Resources.
These projects provide the Company with drill ready targets supporting its objective to
increase the size and quality of the existing resource in the short term.
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 which is further enhanced by the now formal
relationship between the Korean Government owned Korean East – West Power Co. Ltd.
(“EWP”) and Kibo. In this relationship the parties have entered into a formal MOU which
states the parties’ respective commitments towards the joint development of the Rukwa Coal
to Power Project (“RCPP”), where EWP will be responsible for developing and operating the
power generation side of the RCPP and Kibo will be responsible for developing and operating
the mining side of the RCPP.
RUKWA COAL RESOURCE SUMMARY- GEMECS (Pty) Ltd
SEAM NI 43-101 IN SITU
SEAM THICKNESS CLASS MILLION TONS
S4 1.14 Indicated 2.17
S3U 2.04 Indicated 6.92
S3L 2.3 Indicated 12.63
S2 3.45 Indicated 23.43
S1U 2.48 Indicated 7.34
S1L 2.92 Indicated 17.4
S0 1.08 Indicated 1.44
Total Indicated
Resources 71.34
S4 1.31 Inferred 1.38
S3U 2.24 Inferred 2.94
S3L 2.27 Inferred 3.86
S2 3.42 Inferred 7.94
S1U 2.05 Inferred 6.5
S1L 3.15 Inferred 12.83
S0 1.06 Inferred 2.6
Total Inferred
Resources 38.05
TOTAL
RESOURCES 109.39
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.
Review by Qualified Person
The information in this announcement that relates to the Imweru and Lubando mineral
resources is taken from reports titled “Technical Report on the Imweru property (Updated),
Mwanza, Tanzania” dated March 1, 2010 and “Technical Report on the Lubando property,
Mwanza, Tanzania” dated 31st August 2009” (the “Reports”) Both Reports are NI 43-101
compliant and were prepared for Great Basin Gold Rusaf Gold Limited by Nathan Eric Fier
C.P.G., P.Eng. Market Director for EBA Engineering Consultants Ltd and a Senior Mining
Consultant. Mr. Fier is registered as a Certified Professional Geologist with the American
Institute of Professional Geologists, Registration No 10062, and a professional Engineer in
British Columbia, Canada Registration No. 135165. He has extensive experience in the
evaluation and reporting of Archaean Gold projects and is a “Qualified Person” for reporting
gold resources to the NI 43-101 Standard. The information in this announcement that relates
to the Rukwa coal resource is taken from a report “Independent Technical Report for the
Rukwa Coal Project, Mbeya Region, United Republic of Tanzania” dated 19th April 2012 by
CD van Niekerk Director and Principal Geologist with the firm GEMECS (Pty) Ltd. Mr van
Niekerk is a Professional Natural Scientist with the South African Council for Natural
Scientific Professions (SACNASP), Registration No. 400066/98 and a Fellow Member of the
Geological Society of South Africa. He has relevant experience and technical qualifications to
be a “Qualified Person” for reporting coal resources to the NI 43-101 Standard.The Company’s
Exploration Director, Noel O’Keeffe has also reviewed the technical reports and the references
to them in this announcement.
Johannesburg
8 October 2013
Corporate and Designated Adviser
River Group
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