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KIBO MINING PLC - Kibo Agrees Development Costs for MCPP and Balance of Funds Refundable to Company

Release Date: 13/10/2016 08:00
Code(s): KBO     PDF:  
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Kibo Agrees Development Costs for MCPP and Balance of Funds Refundable to Company

Kibo Mining Plc (Incorporated in Ireland) 
(Registration Number: 451931)
(External registration number: 011/007371/10) 
Share code on the JSE Limited: KBO
Share code on the AIM: 
IBOISIN:IE00B97C0C31
("Kibo" or "the Company")

    13 October 2016

Kibo Agrees Development Costs for MCPP and Balance of Funds Refundable to Company 

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 reached agreement 
with SEPCO III on the total direct development cost related to the MCPP ("Mbeya Coal to Power 
Project"). (See RNS dated 25 August 2016).

It was agreed that the direct development cost incurred on the MCPP over the past four years will be 
considered for determining the final development cost refund amount. After considering all 
information provided in this regard, the final amount is USD 10,944,071, which was accepted by 
both parties as a fair reflection of the MCPP development cost over the past four years. Based on 
this, the total amount refundable to Kibo constitutes an amount of USD 5,497,035, i.e. 50% of the 
total development cost as per the terms of the Agreement between SEPCO III and the Company (the 
"Parties") announced on the 25 August 2016. As Kibo has already received an advance of USD 1.8 
million, the total outstanding amount payable to Kibo will be USD 3,672,036. The Parties have 
further agreed that these funds will become payable to Kibo when the MCPP reaches financial close.

The agreement on the MCPP development cost refund was reached at a meeting between SEPCO III 
and Company management this week in China. This meeting coincided with meetings between the 
Company, SEPCO III, Tractebel Engineering and General Electric ("GE"), at which significant 
progress was made towards finalizing the EPC and OEM bid proposals related to the EPC- and OEM 
contracts for the power component of the MCPP.

Louis Coetzee, CEO of Kibo Mining, said: "We are very pleased with the outcome of o this 
week's meetings in China with SEPCO III and GE as well as our MCPP advisors, Tractebel 
Engineering. We are particularly pleased that we have reached agreement on the MCPP 
development costs and the balance of funds refundable to the Company. 

Progress in relation to the finalization of the EPC and OEM bid proposals also exceeded our 
expectations and marks another major step forward in moving the MCPP towards financial 
close." 


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          Beaufort Securities              Broker
                                    8300                     Limited

Oliver Morse        +61 8 9480 2500         RFC Ambrian                       Nominated Adviser on AIM
                                                                   Limited

Daniel Thole / Anna +44 (0) 203 772       Bell Potting                          Investor and Media Relations
             Legge                  2500

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 250-350 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 20th 
April 2015, Kibo signed a Joint Development Agreement for the completion of the Definitive 
Feasibility Studies and development of the MCPP with China based EPC contractor SEPCO III.

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 
13 October 2016
Corporate and Designated Adviser 
River Group


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