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Shareholder Update: Financial Quarter 1 2014
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
(ÒKiboÓ or Òthe CompanyÓ)
May 27, 2014
Shareholder Update: Financial Quarter 1 2014
Kibo Mining plc (ÒKiboÓ or the ÒCompanyÓ) (AIM: KIBO; JSE AltX: KBO) the Tanzania focussed mineral exploration and development company is pleased to provide a Shareholder Update for Q1 2014.
Louis Coetzee, C.E.O. of Kibo commented:
ÒQ1 2014 was a productive quarter as we continued to make good progress in negotiating a joint development agreement with suitable partners for the RCPP, while managing a tight cash flow. This required that we prioritise the recommencement of field activities across all our projects in an effort to preserve cash, with the primary objective of keeping our tenement portfolio intact, and retaining core business capacity. I am pleased to report that the prospects for the remainder of the year look more encouraging, as we move closer to finalising a joint development agreement and project funding for the RCPP.Ó
Highlights during Q1 2014
* Negotiations with potential joint development partners on the Rukwa Coal to Power Project (ÒRCPPÓ) have progressed to an advanced stage and will be a major value catalyst for the RCPP and Kibo once a final decision on a suitable partner is reached.
* Completion of a revised resource estimate for the Imweru gold project following a successful phase 1 drilling programme in late 2013 (See RNS dated February 24, 2014, titled ÒTechnical Report on the Imweru Gold Project Confirms Resource Upside Potential Ò)
* Completion of comprehensive technical report at Haneti based on the results of the 2013 JV funded programme which has confirmed the enhanced nickel-PGM, gold and newly discovered lithium potential of the project.
* Appointment of new Financial Director to the Company
* Successful equity placing under difficult market conditions completed with £750,000 raised to part fund the next phase of drilling at Imweru and for general working purposes.
The following table shows the progress made during Q1, 2014 on our strategic goals for 2014 as announced in the CompanyÕs Shareholder Update dated January 23 2014.
CORPORATE
Strategic Goals 2014
Strategic Goal 1 : Organic Growth
* to increase existing mineral resources in Kibo on both qualitative and quantitative levels
* to add at least two new resource statements in either gold or coal
Progress to Date
After final adjustments during Q1, the Kibo Tenement Portfolio, stabilized at :
* Active PL : 5,092 km2
* Application : 13,563 km2
* Offers : 4,470 km2
All other activity for the Quarter was aimed at:
* In depth interpretation and analysis of the 2013 exploration results and planning of Phase 2 drilling programmes and complimentary exploration work at Imweru and associated drill targets.
* Care and Maintenance and preservation of Cash.
Strategic Goal 2 : Leveraged Growth
* To complete DFS on Rukwa Coal Mine
* To complete PFS on Rukwa Power
* To advance at least one gold project to Scoping Study level
* To add at least one to two new strategic resources through further consolidation of existing exploration assets.
Progress to Date
Preliminary work, including planning and preparation is complete. The main components of the studies will be completed once adequate funding is in place.
Strategic Goal 3: To implement an enhanced IR and PR strategy.
Progress to Date
80% Completed and on schedule as planned.
Strategic Goal 4: To maintain and further improve upon existing high standards of financial and corporate management.
Progress to Date
Q1, focusing on Care and Maintenance, required high standards of financial and especially cash management.
COAL
Strategic Goals 2014
Complete upgrade to measured category (Rukwa)
Continuation of RCPP Project Development Phase
* Completion of DFS at Rukwa Coal (Q1 2015)
* PFS at Rukwa Power (Q 2015)
* Financial Close of the RCPP (mid Ð 2015)
* Development and negotiation of Coal Supply agreements and Power Purchase agreement (Q2, 2014)
* Financial modelling of mine and power station
* Evaluation of potential for ÒCoal to liquidÓ, coal seam gas production and coal export on future resource extension.
Expansion of existing Coal Assets
* Declare resource at Ngaka (Subject to sufficient exploration funding)
* Further consolidation of Rukwa Coal Field.
Progress to Date
* Geographical Survey on the Resources was completed during Q4, 2013.
* DFS in process.
* Financial Close of the RCPP on track.
* Coal Supply Agreement and Power Purchase Agreement negotiations in process.
* Financial modelling of the power station in process.
* Coal to Liquid ( CTL) evaluation scheduled for later FY 14.
* Exploration on the Ngaka Coal Field on Care and Maintenance pending adequate funding.
* Further consolidation of Rukwa Coal Field to commence, upon finalizing agreement with a Joint Development partner for RCPP
GOLD
Strategic Goals 2014
Resource expansion and upgrade at Imweru and Lubando.
Develop resources at one or more of the following:
* Morogoro South
* Pamba
* Sheba
* Mahangu.
Advance Imweru and/or Lubando to Scoping Study level.
Progress to Date
Operational plans prepared and in the process of implementation as dictated by available funding.
NICKEL
Strategic Goals 2014
To drill the targets identified and confirmed during the 2013 exploration campaign.
Progress to Date
Care and Maintenance Programme at present Ð scheduled to recommence with exploration work during Q3 2014
URANIUM
Strategic Goals 2014
Continue to search for suitable JV Partner whilst maintaining Care and Maintenance Status
Update
Care and Maintenance Programme in Place
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 TanzaniaÕs 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 Rukwa, which has a significant JORC compliant defined resource, and is developing a 250-350MWÊmouth-of-mine thermal power station with an established management team that includes Standard Bank as Financial Advisor.
Kibo also holds the Haneti Licence on which the latest technical report confirms prospectivity for nickel, PGMs, gold and strategic metals.
The Company also has extensive gold focused interests including Lake Victoria Goldfields and Morogoro projects. At Lake Victoria, the Company has projects with a substantial existing JORC compliant gold resource and is seeking to materially increase this resource through exploration of known extensions to existing mineralisation.
Kibo Mining also holds the Pinewood (coal & uranium) projects.
The CompanyÕs projects are located in the established and gold prolific Lake Victoria Goldfields, the emerging goldfields of eastern Tanzania andÊthe Mtwara Corridor in southern Tanzania where theÊGovernment has prioritised 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 recognises the potential to enhance the quality of life and opportunity for Tanzanian citizens through careful development of its projects.
Updates on the CompanyÕs activities are regularly posted on its website www.kibomining.com
Contacts
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
Abigail Wayne
+44 (0) 20 3693 1470
Hume Capital Securities Plc
Broker
Oliver Morse
Trinity McIntyre
+61 8 94802500
RFC Ambrian Limited
Nominated Adviser on AIM
Daniel Thšle
Lydia Eades
+44 (0) 207 8611606
+44 (0) 207 8613126
Bell Pottinger
Investor and Media Relations
Johannesburg
27 May 2014
Corporate and Designated Adviser
River Group
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