KIBO MINING PLC - Mbeya Coal to Power Project (MCPP) Receives Formal Reconfirmation to Continue with Accelerated Development of MCPP

Release Date: 01/06/2017 08:00
Code(s): KBO
 
Wrap Text
Mbeya Coal to Power Project (“MCPP”) Receives Formal Reconfirmation to Continue with Accelerated Development of MCPP

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")

01 June 2017

Mbeya Coal to Power Project ("MCPP") Receives Formal Reconfirmation to Continue 
with Accelerated Development of MCPP
Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX: KBO), the Tanzania focused 
mineral exploration and development Company, is pleased to announce that following extensive 
interaction with the Ministry of Energy and Minerals ("MEM") over the past month, the Company 
has received written reconfirmation from the MEM calling for expedited development of the 
MCPP. The letter follows a period during which the MEM has been the subject of in depth policy 
reviews and management changes.
 
Louis Coetzee, CEO of Kibo Mining, said: "We are very pleased with the latest response from 
the MEM, following recent policy and structural changes at the MEM and TANESCO. The 
process of negotiating and agreeing a final power purchase agreement should now progress at a 
considerably faster pace than over preceding months, as this remains the key to completing 
development of the MCPP.

We are particularly encouraged by the MEM's acknowledgement of the very advanced 
development status of the MCPP and its key role as a strategic regional power hub able to tackle 
the unique challenges faced by the Tanzania energy sector at all levels, thereby providing a 
catalyst for further economic development."

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 Morley / 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.  Kibo 
Mining 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.

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's projects are located in central Tanzania and in the Mtwara Corridor in southern 
Tanzania where the Government has prioritized infrastructural development attracting 
significant recent investment in coal and uranium. Kibo Mining 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. 
Kibo Mining recognizes the potential to enhance the quality of life and opportunity for 
Tanzanian citizens through careful development of its projects.

Updates on the Kibo Mining'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
01 June 2017
Corporate and Designated Adviser 
River Group




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