Wrap Text
Shareholder Update: Financial Year 2013/14
Kibo Mining Plc
(Incorporated in Ireland)
Registration Number: 451931
(External registration number: 2011/007371/10)
Share code on the JSE: KBO
Share code on the AIM: KIBO
ISIN: IE00B61XQX41
(“Kibo” or “the Company”)
January 23, 2014
Shareholder Update: Financial Year 2013/14
Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX: KBO), the diversified mineral exploration and
development company, developing an advanced stage coal resource and coal fired power plant in Tanzania,
alongside fully owned gold, nickel, and uranium projects, is pleased to provide the comprehensive Shareholder
Update below.
Louis Coetzee, C.E.O. of Kibo Mining commented:
“We are pleased to provide shareholders with an update on Kibo’s progress during 2013 and planned
objectives for 2014, specifically focused on advancing the Company's current key coal and gold projects as
well as opportunistically considering new low entry price project opportunities in Tanzania. Kibo had a
successful 2013, and we achieved the following key milestones:
• Complete restructuring of board and executive management team
• The Rukwa coal fired power project received Tanzanian government support, included in the
Tanzanian Strategic National Energy Plan and attracted serious interest from various international
development partners
• The company signed an MOU on Rukwa with EWP
• 800,000oz of gold resource added with acquisition of Imweru and Lubando
• The successful completion of three equity placements
• Kibo now debt free and with enhanced financial flexibility following innovative settlement of all
debts
• Initiate the RCPP Project Development Stage
CORPORATE
Strategic Objectives 2013 2013 Objectives Achieved Strategic Goals 2014
Complete Board Restructuring Strategic Goal 1 : Organic Growth
* to increase existing mineral resources on
Complete Management Restructuring both qualitative and quantitative levels
Complete Capital Restructuring * to add at least two new resource
statements in either gold or coal
Complete Restructuring Of Broking, Strategic Goal 2 : Leveraged Growth
IR and PR services
* To complete DFS on Rukwa Coal Mine
Establish and align optimised structure, Completed 3 Successful Equity * To complete PFS on Rukwa Power
capability and capacity to execute the Placements
* To advance at least one gold project to
Kibo corporate strategy
Scoping Study level
* To add at least one new strategic resource
through further consolidation of existing
Innovative settlement of all historic exploration assets
and current debts and expansion of Strategic Goal 3: To implement an enhanced IR
financing options. (Kibo currently and PR strategy
completely debt free)
Strategic Goal 4: To maintain and further improve
upon existing high standards of financial and
corporate management
COAL
2013
Strategic Objectives
Objectives 2013 Redirected Objectives Strategic Goals 2014
2013
Achieved
Acquire Tanzanian Letter Of Support Complete upgrade to
Government Support from Tanzanian measured category
Ministry Of (Rukwa)
Energy And
Minerals (MEM) Continuation of
RCPP Project
RCPP included in Development Phase
Tanzanian
Strategic National * Completion of
Energy Plan DFS at Rukwa
Coal (Q1 2015)
Repeated
Expressions Of * PFS at Rukwa
Support from Power (Q 2015)
Tanzanian * Financial Close
Government of the RCPP
(mid – 2015)
Identify And Engage MOU signed with
Suitable Development EWP * Development
Partner for RCPP and negotiation
of Coal Supply
agreements and
Negotiate and advance JV Advance negotiations towards finalising JV Power Purchase
arrangements with agreement for the development of RCPP. Negotiation agreement (Q2,
selected Development process proved to both sides that further feasibility 2014)
Partner work is imperative for the definition and
establishment of sound commercial terms without * Financial
which the envisaged JV agreement cannot be modelling of
finalised mine and power
station
Subsequent to announcing the EWP MOU, strong
interest from numerous other potential development * Evaluation of
partners was received, confirming a much wider potential for
international interest from potential developers than “Coal to liquid”,
originally anticipated. coal seam gas
production and
The events stated above compelled Kibo to re – assess coal export on
and redirect its strategic course for the RCPP. This was future resource
done to ensure that proper advantage could be taken of
2013
Strategic Objectives
Objectives 2013 Redirected Objectives Strategic Goals 2014
2013
Achieved
the opportunity to negotiate and settle for the best extension
possible commercial terms with the best possible
development partner. Expansion of existing
Coal Assets
The following strategic decisions embody the redirected
development course for the RCPP: * Declare
resource at
Decision no 1: Postpone finalisation of JV Ngaka (Subject
agreement and planned site visits, to sufficient
exploration
Decision no 2: Assess, evaluate and engage funding)
alternative development partners other than EWP
* Further
Decision no 3: Initiate feasibility studies in parallel consolidation of
to the activities described in Decision no 1 and 2, Rukwa Coal
above Field
Decision no 4: Appoint Executive Management team
for the RCPP (REMT)*
Decision no 5: Fund scoping stages of feasibility
(Mining and Power) from own resources and
subsequent stages, ie PFS and DFS from Project
Funding
Notes to decisions:
* During September – November, 2013 Kibo
established the necessary policy and process to
engage with more than one potential
development partner. To date, Kibo received
firm expressions of interest from 5 more
potential development partners, all with
exceptional credentials and proven international
track records in the development of projects like
the RCPP. In addition to EWP all five interested
parties have been engaged by Kibo, and are
currently reviewing the RCPP
* Feasibility Studies on mining and power will
first and foremost facilitate firm commercial
terms for the eventual definitive Joint Venture
agreement with the development partner(s) best
suited for the development of the RCPP
* Discussions and negotiations with regards to
project funding is well advanced and progressing
satisfactory
Establish adequate Appointment of Financial modelling in progress
financial capacity for the Standard Bank as
RCPP financial advisor
Initiate RCPP Project Complete
Development Phase comprehensive
Project
Development Plan
Resource Upgrade
In process
Request for
proposals on
mining and power
FS;s
Appointment of
REMT
* Refer to RNS dated October 08, 2013
GOLD
Strategic
Objectives 2013 Objectives Achieved Strategic Goals 2014
2013
Consolidate Relinquishment of licenses* Resource expansion and upgrade at Imweru and Lubando
Portfolio
Acquisition of Imweru and Develop resources at one or more of the following:
Lubando, adding 800,000 Oz
resource * Morogoro South
* Pamba
Further Completion of Phase 1 drilling at
Development Of Imweru gold project ** * Sheba
Consolidated * Mahangu
Portfolio Identification of seven additional
exploration drill targets in Lake Advance Imweru and/or Lubando to Scoping Study level
Victoria and Morogoro regions
* Refer to RNS dated June 03, 2013
** Refer to RNS dated January 14, 2014 for drill results
NICKEL
Strategic 2013
Objectives Objectives 2013 Redirected Objectives Strategic Goals 2014
2013 Achieved
Consolidate Relinquishment
Portfolio of licenses*
Further Sign JV Kibo re-acquired 100% interest in the Haneti nickel-PGM To drill the targets identified and
Development Agreement project, after Votorantim Metaís Participações Ltda confirmed during the 2013
Of (Votorantim) opted out of the joint venture with Kibo, exploration campaign
Consolidated through which it was earning into the Haneti project by
Portfolio funding exploration work. Votorantim’s decision followed
a strategic review of its Southern Africa exploration
operations**
Successful
completion of
Stage 1
Exploration
Programme***
* Refer to RNS dated June 03, 2013
** Refer to RNS dated December 05, 2013
*** Refer to RNS’s dated December 13 and 19, 2013
URANIUM
2013 Objectives
Strategic Objectives 2013 Strategic Goals 2014
Achieved
Consolidate Relinquishment of licenses* Continue to search for suitable JV Partner
Portfolio whilst maintaining Care and Maintenance
Status
The portfolio remains in care and
maintenance, awaiting market
improvement in relation to
Uranium
* Refer to RNS dated June 03, 2013.
Kibo Mining - Notes to editors
Kibo was established in early 2008 to explore and develop mineral deposits in Tanzania. The company was
admitted to AIM in London on 27 April 2010 and the AltX in Johannesburg on 30 May 2011. The Company is
developing the Rukwa mouth-of-mine thermal power station and controls one of Tanzania’s largest mineral
right portfolios, including the - Haneti (nickel, PGE and gold), Morogoro, Lake Victoria (Gold), and Pinewood
(Coal & Uranium) projects.
Its projects are located both 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
prioritised infrastructural development attracting significant recent investment in coal and uranium.
Kibo's objective is to build shareholder value sustainably. This will be achieved primarily through exploration
of its own projects and leveraging the Company's experience in Tanzania to acquire exploration and
development assets on competitive terms. The focus is on assets that can be moved swiftly up the value curve
whilst benefitting from strategic relationships with industry leaders with special skills and competencies within
their chosen fields.
Updates on the Company’s activities are regularly posted on its website www.kibomining.com
Contacts
Chief Executive Officer
Louis Coetzee + 27 (0)83 2606126 Kibo Mining plc
Andreas
Corporate and Designated
Lianos + 27 (0)83 4408365 River Group
Adviser on JSE
Jon Belliss + 44 (0) 20 3216 2630 XCAP Broker
Stuart Laing + 61 8 94802500 RFC Ambrian Limited Nominated Adviser on AIM
Daniel Thöle +44 (0) 207 8611606 Bell Pottinger Investor and Media Relations
Johannesburg
23 January 2014
Corporate and Designated Adviser
River Group
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