Kibo Mining Plc Q1 2017 Strategic Objectives successfully met (2920A)

TIDMKIBO

RNS Number : 2920A

Kibo Mining Plc

23 March 2017

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 16(th) 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

 
                   +27 (0) 83     Kibo Mining      Chief Executive 
   Louis Coetzee     2606126           plc              Officer 
----------------  ------------  ---------------  ------------------- 
 Andreas Lianos    +27 (0) 83     River Group     Corporate Adviser 
                     4408365                        and Designated 
                                                    Adviser on JSE 
----------------  ------------  ---------------  ------------------- 
   Jon Belliss     +44 (0) 207      Beaufort            Broker 
                     382 8300      Securities 
                                     Limited 
----------------  ------------  ---------------  ------------------- 
  Oliver Morse     +61 8 9480     RFC Ambrian     Nominated Adviser 
                       2500          Limited            on AIM 
----------------  ------------  ---------------  ------------------- 
   Liz Morely      +44 (0) 203   Bell Pottinger   Investor and Media 
   / Anna Legge      772 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 5(th) September 2016 and signed an EPC contract with SEPCO III on the 19(th) 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

This information is provided by RNS

The company news service from the London Stock Exchange

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March 23, 2017 04:00 ET (08:00 GMT)