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KIBO MINING PLC - Kibo Signs Memorandum of Understanding with Mbeya Cement

Release Date: 20/04/2017 08:00
Code(s): KBO     PDF:  
Wrap Text
Kibo Signs Memorandum of Understanding with Mbeya Cement

 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: IE00B97C031
 (“Kibo” or “the Company”)


 20 April 2017

       Kibo Signs Memorandum of Understanding with Mbeya Cement i.r.o. of Strategic
               Collaboration and Reciprocal Commodity Supply Arrangements


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 a
strategic Memorandum of Understanding with Mbeya Cement Company LTD (“Mbeya Cement”),
to develop a strategic regional collaboration and reciprocal supply of materials agreement.

Over the past months the Company and Mbeya Cement have identified various areas in which
they believe they can collaborate towards the socio-economic benefit of the Mbeya and Songwe
regions as well as for their own commercial objectives. After identifying the various areas of
possible collaboration, Kibo and Mbeya Cement have committed their respective companies
towards achieving these benefits by agreeing and signing a strategic Memorandum of
Understanding (“MOU”). The MOU will guide and govern a process whereby the parties will use
their reasonable commercial endeavours to procure definitive agreements that will ensure fairness
both in respect of product pricing and specific quantities, and will also make provision for market
conditions to procure a fair commercial relationship in which all parties share in the risks and
benefits of prevailing market conditions. Collaboration / commercial arrangements / agreements
will be pursued in respect of the following:

   •   Discussions with regional development partners including government agencies, NGO’s,
       community stakeholders and the private sector regarding an optimal roadmap to give effect
       to policies in respect of regional socio-economic and related development programs and
       projects;

   •   Exclusive coal supply agreement in respect of coal produced from the Mbeya Coal Mine,
       to supply coal to Mbeya Cement, subject to guaranteeing specified quality and quantity
       specifications from Mbeya Cement;

   •   A definitive supply or collaboration or contract mining or similar agreement in respect of
       limestone to meet lime requirements of both the Mbeya power station and Mbeya Cement;

   •   Definitive supply agreement to supply fly ash produced from the Mbeya Power Plant to
       Mbeya Cement;
   •   Definitive electricity supply agreement to supply electricity to Mbeya Cement in respect of
       electricity produced from the Mbeya Power Plant; and

   •   Definitive supply agreement either directly with Mbeya Coal or with its contractors in
       respect of cement produced by Mbeya Cement for use in the construction of the Mbeya
       Coal Mine and Mbeya Power Plant.

Louis Coetzee, CEO of Kibo Mining, said: “We are very pleased with the Mbeya Cement MOU.
This MOU constitutes our very first step towards implementation of the broader MCPP regional
and local development objectives; our first commercial diversification opportunity in as far as
coal supply agreements are concerned, other than to the Mbeya Power Plant. It also marks the
first direct electricity supply agreement opportunity outside commitments within the PPA.

Kibo is currently involved in various other similar negotiations / initiatives towards establishing
the MCPP’s commercial role as a critically important regional socio-economic development
catalyst. As stated in previous announcements, the MCPP fulfils a dual role as strategic national
energy supplier on the one hand and as a pivotal socio-economic development agent on the
other.

We are very excited to have Mbeya Cement as a partner and we are looking forward to working
together to transform the Songwe and Mbeya regions into a significant economic development
hub in East Africa”

Ilse Boshoff, CEO of Lafarge Tanzania said, “We are very excited with the partnership that we
have with the Kibo and this gives us mutual benefits in leveraging our key strengths whilst
supporting the government and communities at large.

We, Lafarge Tanzania are a part of a big Group – LafargeHolcim that is leading the world in
producing construction solutions to meet different needs. LafargeHolcim believes in providing
the World what really matters; from housing to infrastructure, Mines to customized energy
solutions like what we have signed for with Kibo Mining Plc.”

About Mbeya Cement / Lafarge Tanzania

Mbeya Cement was acquired by Lafarge in the early 2000. It was previously fully owned by the
Government of Tanzania.

Lafarge merged with Holcim and formed LafargeHolcim Group in July 2015 and has over 180
years of combined experience, leading-edge technologies and innovations in the building materials
industry to address the challenges of the 21st century.

With presence in 90 countries and more than 2,500 plants, the most innovative cement, concrete,
and aggregates solutions to meet its customers’ needs, and a commitment to health, safety, and
sustainability, the LafargeHolcim Group has the most efficient business and the best performing
operating models driven by very strong team of talents.
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
                                          Limited                   on AIM

 Liz Morley /      +44 (0) 203 772        Bell Pottinger            Investor and Media
 Anna Legge        2500                                             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 43-101compliant
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
20 April 2017
Corporate and Designated Adviser
River Group

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