Kibo Mining Plc MCPP SEPCO III Agreement Update (9149I)

TIDMKIBO

RNS Number : 9149I

Kibo Mining Plc

05 September 2016

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")

05 September 2016

Kibo Receives First Payment Under Newly Signed SEPCO III Agreement

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 today received proof of payment for the amount of USD1, 800, 000.00 from SEPCO III. This payment was received in settlement of the first fixed payment due under the new Agreement (the "Agreement") with major international China based EPC contractor, SEPCO III, announced on 25 August 2016.

Louis Coetzee, CEO of Kibo Mining, said: "SEPCO III's prompt and diligent performance with regard to the first payment due under the Agreement demonstrates great enthusiasm for and belief in the MCPP as well as in the Company. We believe that all the remaining conditions in the Agreement will be met with the same diligence and that the Kibo / SEPCO III relationship will play a pivotal role in the further development and ultimate delivery of the MCPP."

Contacts

 
 
      Louis Coetzee        +27 (0) 83      Kibo Mining            Chief Executive 
                           2606126         plc                    Officer 
---------------------  --------------  --------------------  ------------------------- 
                                                                     Corporate Adviser 
       Andreas Lianos      +27 (0) 83      River Group                and Designated 
                           4408365                                    Adviser on JSE 
---------------------  --------------  --------------------  ------------------------- 
                                               Beaufort 
                                                Securities 
                                                Limited 
      Jon Belliss         +44 (0) 207                            Broker 
                           382 
                           8300 
---------------------  --------------  --------------------  ------------------------- 
                                            RFC Ambrian 
      Oliver Morse         +61 8 9480        Limited              Nominated Adviser 
                           2500                                   on AIM 
---------------------  --------------  --------------------  ------------------------- 
 
  Daniel Thöle       +44 (0) 203        Bell Pottinger      Investor and Media 
     / Anna Legge             772                                     Relations 
                              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

05 September 2016

Corporate and Designated Adviser River Group

This information is provided by RNS

The company news service from the London Stock Exchange

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September 05, 2016 02:30 ET (06:30 GMT)