Kibo Mining Plc MCPP Finalizes Transmission Line Bid (0987P)

TIDMKIBO

RNS Number : 0987P

Kibo Mining Plc

29 August 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: IE00B97C031

("Kibo" or "the Company")

29 August 2017

Mbeya Coal to Power Project ("MCPP") Finalizes Transmission Line Bid

Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX: KBO), the Tanzania focused mineral exploration and development Company, is pleased to announce that the Company has over the past week concluded the final bid clarification with regard to the construction of the transmission line that will evacuate power from the Mbeya Power Plant in the Songwe District to the TANESCO Mbeya sub-station.

The Engineering, Procurement and Construction ("EPC") (Power) contractual work was divided into two lots, i.e. Lot 1, the Power Station EPC contract, and Lot 2, the Power Line Construction EPC contract. Lot 1 was awarded conditionally to SEPCO III during December 2016 with Lot 2 to be finalised subject to concluding a comprehensive line study. Following completion of various technical studies related to the transmission line, most notably an in-country line reconnaissance and survey by a combined Tractebel Engineering and SEPCO III team, a final bid was prepared and submitted to the Company by SEPCO III. Kibo Mining and Tractebel Engineering conducted and concluded a clarification workshop regarding the aforementioned final bid with the SEPCO III technical team on 21 and 22 August 2017 in Beijing, China. The purpose of the clarification workshop was to finalise the technical component of the Power Line Construction EPC contract which is to be awarded to SEPCO III as an integral part of the Power Station EPC contract, subject to final technical, financial and operational benchmarking that will be conducted by Tractebel Engineering over the course of the next month.

Louis Coetzee, CEO of Kibo Mining, said: "Finalization of the transmission line bid concludes all technical development work on the MCPP prior to financial close. The Company is also continuing to make significant progress on the remaining work streams it has reported on over the past two months, with further updates to follow in this regard.".

Contacts

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

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 a large mineral rights portfolio in Tanzania. 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

29 August 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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August 29, 2017 02:01 ET (06:01 GMT)