Wrap Text
Meets all its Q1 2017 Strategic Objectives successfully
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”)
23 March 2017
Kibo Mining meets all its Q1 2017 Strategic Objectives successfully
Kibo Mining plc (“Kibo” or the “Company”) (AIM: KIBO; AltX: KBO), the Tanzania focused
mineral exploration and development company, is pleased to provide a summary update of
progress and activities during Q1 2017.
- Continued liaison with the Tanzanian Government on the results of its Integrated
Bankable Feasibility Study (“IBFS”) confirmed that the Company is well placed to
conclude negotiations on a Power Purchase Agreement (“PPA”) following completion of
Tanzanian Electric Supply Company (“TANESCO”) restructuring and Minister of Energy
and Minerals (“MEM”) policy changes;
- Kibo has successfully established significant capacity and progress on all fronts
in preparing for the financial close on the Mbeya Coal to Power Project (“MCPP”)
with the able and committed assistance of its advisors, partners and contractors;
- The Company has terminated its JVs on early stage projects (Morogoro & Pinewood)
and planned rationalisation of its remaining early stage exploration projects to
enhance focus of available resources on flagship projects;
- Vend in of Imweru and Lubando Gold projects via Opera RTO is in the final stages
of completion and subsequent re-admission to AIM; and
- Kibo has launched a CSR programme for MCPP.
The Company announced the finalization of the Integrated Bankable Feasibility Study for
the MCPP on the 16th January, following receipt of an integrated financial model for the
project and acceptance by the relevant Tanzanian authorities of the Environmental &
Social Impact Assessments (“ESIA”) scoping reports. This IBFS is a key document as it
integrates the results of all studies to date on the project. The strongly positive
metrics across the operational, technical and financial areas have enabled Kibo to
negotiate successfully towards agreeing a Power Purchase Agreement with the Tanzanian
Government.
The MCPP is now in the final stage of project development prior to Financial Close which
will ensure, inter alia, that it is in compliance with Tanzanian legislation and latest
policy changes. This process is ongoing and we are working in a close and productive
relationship with the Tanzanian Government, who continue to show strong support for the
MCPP, which is deemed to constitute an integral part of the Government’s strategy to
address the country’s power shortages. TANESCO is regularly updated on the positive
MCPP IBFS results and is committed to ensuring that a final PPA is concluded as soon as
possible.
As part of the Company’s ongoing rationalization strategy regarding all its early stage
exploration projects, Kibo has decided to terminate its Morogoro and Pinewood joint
ventures by mutual consent with its JV partner Metal Tiger PLC. The Pinewood and Morogoro
projects together constituted a widely dispersed portfolio of early stage gold and uranium
prospective ground that no longer fits into the Company’s portfolio of more advanced,
development focussed assets.
Over the course of the past two months the Company has made good progress on its reverse
takeover transaction with Opera Investments Inc. (to be renamed Katoro Gold (“Katoro”))
and is now in the final stages of bringing Katoro to AIM. The objective post re-admission
is to complete a definitive feasibility study at Imweru, with a view to getting Imweru
into production within 18 to 24 months from the date of readmission of Katoro Gold, with
an initial production target of 50K oz p/a.
During Q1 2017, Kibo also officially launched its corporate social responsibility
programme for the MCPP. In this regard the Company initiated a project to assist with the
refurbishment of schools within the villages closest to its MCPP project site. The first
phase of this was recently completed, with Kibo handing over two newly constructed class
rooms to the Meheza and Namkukwe communities in the presence of the district and regional
commissioners for the Songwe Region.
Louis Coetzee CEO, Kibo Mining said "We are very satisfied with our progress on meeting
the Kibo Strategic Objectives for Q1 2017 Progress on finalizing the MCPP PPA remains
slower than we had hoped, but significant progress has been made in recent weeks and the
indications are that this process will now continue to progress at pace.
Progress on the Opera RTO has also proceeded well and we are looking forward to completing
this transaction shortly and to commence with the Imweru feasibility study during April 2017."
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
Liz Morely / 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 250-350 MW mouth-of-mine thermal power
station, the Mbeya Coal to Power Project (“MCPP”), previously called the Rukwa Coal to
Power Project (“RCPP”), with an established management team that includes ABSA / Barclays
as Financial Advisor. Kibo has completed a Coal Mining Definitive Feasibility Study and a
Power Pre- Feasibility Study for the Mbeya project and has recently announced the
completion of an Integrated Bankable Feasibility Study report for the project. 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 and signed an EPC contract with SEPCO
III on the 19th December 2016.
The Company also has extensive gold focused interests in Lake Victoria Goldfields of
northern Tanzania, including 100% owned projects with a 515,000 oz. JORC compliant gold
Mineral Resource at the Imweru Project and a 240,000 oz. JORC 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.
The Company's projects are located in the established and gold prolific Lake Victoria
Goldfields 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
This announcement contains inside information as stipulated under the Market Abuse
Regulations (EU) no. 596/2014 ("MAR").
Johannesburg
23 March 2017
Corporate and Designated Adviser
River Group
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