KIBO MINING PLC - Kibo Signs Financial Advisory Mandate Letter with ABSA / Barclays

Kibo Signs Financial Advisory Mandate Letter with ABSA / Barclays

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") 

22 September 2016

Kibo Signs Financial Advisory Mandate Letter with ABSA / Barclays 
 
Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX: KBO), the Tanzania focused 
mineral exploration and development Company, is pleased to announce that it has signed an advisory 
engagement letter (the "Mandate") with Absa Bank Limited / Barclays Bank Limited (the "Advisor") 
laying out the scope of work and terms under which it will act as new financial advisor to the 
Company on the Mbeya Coal to Power Project ("MCPP" or the "Project").
 
The scope of work in the Mandate requires the Advisor to assist in delivering the Project to a 
successful Financial Close by completing amongst others, the following:

*develop a financial model for the Project with the assistance of the Company and its technical 
advisors and partners; 
 
*assist the Company in the negotiation, review and finalization of all agreements pertaining to 
the MCPP including, inter alia, the power purchase agreement, EPC-agreement, O & M 
agreement and grid connection agreement; and
 
*develop a comprehensive and optimum funding structure for the project in cooperation with 
the Company and its advisors, and to implement it by soliciting and negotiating with potential 
lenders and/or equity providers sufficient funding on optimal terms to bring the project to 
successful Financial Close.

The Company has been successful in negotiating a minimal cash retainer fee in return for granting 
the Advisors equity call options of 3.5% of the total share capital of Mbeya Development 
Company Ltd (the "Project Company") ("Advisor Options"). The terms of the Advisor Options 
will be formalized in an option agreement within three months of the commencement date of the 
Mandate. The option agreement will provide for shares to be issued ("Call Option Shares") and 
the Advisor Options to be held in trust until the exercise date. It will also include a provision for 
the Advisors to be issued further shares to maintain its holding at 3.5% in the event of further 
share issues in the Project Company. The exercise date of the Advisor Options will be no earlier 
than 18 months after completion and commissioning of the Project., The option agreement will 
include a mechanism for release of the rights of the Advisor to the Call Option Shares on the 
exercise date, subject to payment of an amount equal to the value of the Call Option Shares 
calculated on the exercise date. The valuation of the call options will be calculated based on to the 
Net Present Value of the Project. 

The Mandate also provides for the Company, at its sole election, to suspend payment of the 
retainer fee for one month or longer in the event of project delays. The Company will have the 
right to exercise this right twice during the period in which the Mandate is in force. 

Louis Coetzee, CEO of Kibo Mining, said: "We are extremely pleased with having ABSA / 
Barclays on board as the new financial advisor to the MCPP on the terms outlined above. ABSA / 
Barclays will replace our existing financial advisor, Standard Bank for the very important 
financial close phase of the MCPP. We are glad to report that the transition to ABSA will be 
seamless and will not result in any delay or additional budget cost towards completion of the 
Integrated Bankable Feasibility Study for the project. We are looking forward to benefitting from 
ABSA / Barclays' impressive record in bringing projects similar to the MCPP to successful 
financial close. 
 
The fact that ABSA / Barclays are prepared to take an equity stake in the MCPP in lieu of the 
standard cash retainer fee, on completion of the project, not only helps with our cash flow in the 
short to medium term, but also demonstrates its strong confidence and belief in the project. 
 
Together with our recently announced agreement with SEPCO III, appointment of Norton Rose 
Fulbright as legal advisers to the MCPP and MOU with GE, the addition of ABSA / Barclays to 
our team of advisors and partners represents another key step in moving the project towards 
successful financial close." 
 
About ABSA / Barclays 
 
Absa Bank Limited (Absa) is a wholly owned subsidiary of Barclays Africa Group Limited, a JSE 
listed company which is currently 50.1% owned by the UK's Barclays Bank Plc. ABSA's 
corporate and investment banking business has successfully provided advice and structured 
finance to a number of major energy projects across Africa in recent years for both governments 
and private developers.  

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 
 +44 (0) 207 382 8300 
Beaufort Securities Limited 
Broker 
 
Oliver Morse 
+61 8 9480 2500 
RFC Ambrian Limited 
Nominated Adviser on AIM 
 
Daniel Thšle / Anna Legge 
+44 (0) 203 772 2500 
Bell Pottinger 
Investor and Media 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 43-101 compliant 
defined resource, and is developing a 300 MW mouth-of-mine thermal power station, the Mbeya Coal 
to Power Project ("MCPP"), previously called Rukwa Coal to Power Project ("RCPP"), with an 
established management team that includes Standard Bank as Financial Advisor. Kibo is undertaking a 
Coal Mining Definitive Feasibility Study and a Power Pre- Feasibility Study for the Mbeya project with 
an integrated Bankable Feasibility Study report for the MCPP to be released in the near term. 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 5th September 2016 
 
The Company also has extensive gold focused interests including Lake Victoria Goldfields and 
Morogoro projects. At Lake Victoria, the Company has 100% owned projects with a 550,000 oz. JORC 
compliant gold Mineral Resource at the Imweru Project and a 168,000 oz. NI 43-101 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. 
 
Kibo Mining further holds the Pinewood (coal & uranium) project where the company has entered into 
a 50/50 Exploration Joint Venture with Metal Tiger plc. 
 
Finally, the Company also holds the Morogoro (gold) project where the company has also entered into a 
50/50 Exploration Joint Venture with Metal Tiger plc. 
 
The Company's projects are located 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 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 

Johannesburg TBC  
22 September 2016 
Corporate and Designated Adviser 
River Group 



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