Kibo Mining Plc MCPP Update: Date Extended to Finalize Agreement (6462K)
23 September 2016 - 8:00AM
UK Regulatory
TIDMKIBO
RNS Number : 6462K
Kibo Mining Plc
23 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: KIBO
ISIN:IE00B97C0C31
("Kibo" or "the Company")
23 September 2016
Kibo Extends Date to Finalize Agreement for Balance of Refund
Payment due on MCPP Development Costs
Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX:
KBO), the Tanzania focused mineral exploration and development
Company, has today agreed to extend the deadline on which SEPCO III
and Kibo had intended to reach agreement with regard to the final
amount still due for payment with regard to the MCPP development
cost refund (see RNS dated 25 August 2016). In accordance with the
revised agreement ("the Agreement"), SEPCO III was afforded the
opportunity to conduct an independent audit of the development
costs incurred on the MCPP to date. In spite of a diligent effort
made so far to get this done in time, the time allowed for this
work proved to be inadequate given that the costs in question cover
a period spanning several financial years. A new deadline was set
for 14 October 2016, when Kibo and Tractebel Engineering will be
meeting with SEPCO III in Qingdao, China, to assess and review
SEPCO III's progress in preparing the EPC bid for the power
component of the MCPP.
Louis Coetzee, CEO of Kibo Mining, said: "Kibo is very pleased
with SEPCO III's performance to date under the revised agreement
announced on 25 August 2016, with all work streams related to the
preparation of the EPC-bid currently on schedule or slightly ahead
of schedule.
Both parties however underestimated the amount of work involved
in conducting the independent audit referred to above. Kibo and
SEPCO III subsequently agreed that a delay in finalizing this
particular element of the Agreement was not going to affect either
party's commitment and willingness to continue in parallel with the
preparation and finalization of the EPC-bid and it was therefore
decided, by mutual agreement, to extend the date for final
agreement on this matter."
Contacts
Louis Coetzee +27 (0) 83 2606126 Kibo Mining Chief Executive Officer
plc
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Corporate Adviser and
Andreas Lianos +27 (0) 83 4408365 River Group Designated Adviser on
JSE
--------------------- ---------------------- --------------------------- ------------------------------
Beaufort Securities
Limited
Jon Belliss +44 (0) 207 382 Broker
8300
--------------------- ---------------------- --------------------------- ------------------------------
RFC Ambrian
Oliver Morse +61 8 9480 2500 Limited Nominated Adviser on
AIM
--------------------- ---------------------- --------------------------- ------------------------------
Daniel Thöle +44 (0) 203 772 Bell Pottinger Investor and Media Relations
/ Anna Legge
2500
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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
23 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 23, 2016 03:00 ET (07:00 GMT)