Last checked at 2 Jun 2017 08:00
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")
02 June 2017
Successful Achievement of Strategic Development Objectives Result in Significant Cost Savings via Rationalization of Lake Victoria Early Stage Licence Portfolios
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 a comprehensive technical and commercial review of its mineral licence portfolio in Tanzania it has relinquished several early stage non-core prospecting licences, licence offers and licence applications (together "the Licences") in the Lake Victoria Region. This relinquishment (the "Rationalization") is in line with the Company's strategy to focus resources on its MCPP development projects (coal mining & coal to power), Haneti project (nickel), and the Imweru & Lubando projects (gold) held by Katoro Gold PLC ("Katoro") in which Kibo is a 57.1% shareholder.
Lake Victoria Project
The Rationalization was carried out as part of the process of facilitating the spin-out of Kibo's key gold resource based projects, Imweru and Lubando in the region, to Katoro (admitted to trading on AIM on 23 May 2017). The effect of the Rationalization is that the Company has now surrendered most of its early stage gold Licences in the Lake Victoria Goldfields ("LVG") of northern Tanzania and its sole remaining gold interests in this region are in the greater Imweru and Lubando licence portfolios through its majority interest in Katoro. Altogether 79 Licences were surrendered constituting a total Licence area of approximately 800 km2. The surrendered Licences cover various non-contiguous single Licence and small Licence blocks scattered throughout the LVG. All the Licences are at a very early stage of exploration and no longer contribute towards the Company's strategic development objectives.
Maps showing the Company's updated Licence holdings in the Lake Victoria Region following the Rationalization can be found within the Lake Victoria project page on the Company's website www.kibomining.com.
Louis Coetzee, CEO of Kibo Mining, said: "Rationalization of our Lake Victoria project is a result of a continuous in-house evaluation of our mineral portfolios to ensure they are aligned with and positively support and contribute towards our corporate development strategy. The significant cost savings and additional availability of resources from this rationalization will be re-assigned to our flagship MCPP and Haneti nickel projects."
Enquiries
Kibo Mining plc
| +27 (0) 83 2606126 |
Louis Coetzee
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River Group
| +27 (0) 83 4408365 |
Andreas Lianos
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Beaufort Securities Limited
| +44 (0) 207 382 8300 |
Jon Belliss
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RFC Ambrian Limited
| +61 8 9480 2500 |
Andrew Thomson
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Bell Pottinger
| +44 (0) 203 772 2500 |
Liz Morley
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Molly Stewart
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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 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
02 June 2017
Corporate and Designated Adviser River Group