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27 May 2014 09:00
Kibo Mining Plc
(Incorporated in Ireland)
Registration Number: 451931
(External registration number: 2011/007371/10)
Share code on the JSE: KBO
Share code on the AIM: KIBO
ISIN: IE00B61XQX41
("Kibo" or "the Company")
May 27, 2014
Shareholder Update: Financial Quarter 1 2014
Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; JSE AltX: KBO) the Tanzania focussed mineral exploration and development company is pleased to provide a Shareholder Update for Q1 2014.
Louis Coetzee, C.E.O. of Kibo commented:
"Q1 2014 was a productive quarter as we continued to make good progress in negotiating a joint development agreement with suitable partners for the RCPP, while managing a tight cash flow. This required that we prioritize the recommencement of field activities across all our projects in an effort to preserve cash, with the primary objective of keeping our tenement portfolio intact, and retaining core business capacity. I am pleased to report that the prospects for the remainder of the year look more encouraging, as we move closer to finalising a joint development agreement and project funding for the RCPP."
Highlights during Q1 2014
· Negotiations with potential joint development partners on the Rukwa Coal to Power Project ("RCPP") have progressed to an advanced stage and will be a major value catalyst for the RCPP and Kibo once a final decision on a suitable partner is reached.
· Completion of a revised resource estimate for the Imweru gold project following a successful phase 1 drilling programme in late 2013 (See RNS dated February 24, 2014, titled "Technical Report on the Imweru Gold Project Confirms Resource Upside Potential ")
· Completion of comprehensive technical report at Haneti based on the results of the 2013 JV funded programme which has confirmed the enhanced nickel-PGM, gold and newly discovered lithium potential of the project.
· Appointment of new Financial Director to the Company
· Successful equity placing under difficult market conditions completed with £750,000 raised to part fund the next phase of drilling at Imweru and for general working purposes.
The following table shows the progress made during Q1, 2014 on our strategic goals for 2014 as announced in the Company's Shareholder Update dated January 23 2014.
CORPORATE
Strategic Goals 2014 | Progress to Date |
Strategic Goal 1 : Organic Growth û to increase existing mineral resources in Kibo on both qualitative and quantitative levels û to add at least two new resource statements in either gold or coal | After final adjustments during Q1, the Kibo Tenement Portfolio, stabilized at : · Active PL : 5,092 km2 · Application : 13,563 km2 · Offers : 4,470 km2 All other activity for the Quarter was aimed at: · In depth interpretation and analysis of the 2013 exploration results and planning of Phase 2 drilling programmes and complimentary exploration work at Imweru and associated drill targets. · Care and Maintenance and preservation of Cash. |
Strategic Goal 2 : Leveraged Growth û To complete DFS on Rukwa Coal Mine û To complete PFS on Rukwa Power û To advance at least one gold project to Scoping Study level û To add at least one to two new strategic resources through further consolidation of existing exploration assets. | Preliminary work, including planning and preparation is complete. The main components of the studies will be completed once adequate funding is in place. |
Strategic Goal 3: To implement an enhanced IR and PR strategy. | 80% Completed and on schedule as planned. |
Strategic Goal 4: To maintain and further improve upon existing high standards of financial and corporate management. | Q1, focusing on Care and Maintenance, required high standards of financial and especially cash management. |
COAL
Strategic Goals 2014 | |
ð Complete upgrade to measured category (Rukwa) ð Continuation of RCPP Project Development Phase û Completion of DFS at Rukwa Coal (Q1 2015) û PFS at Rukwa Power (Q 2015) û Financial Close of the RCPP (mid - 2015) û Development and negotiation of Coal Supply agreements and Power Purchase agreement (Q2, 2014) û Financial modelling of mine and power station û Evaluation of potential for "Coal to liquid", coal seam gas production and coal export on future resource extension. ð Expansion of existing Coal Assets û Declare resource at Ngaka (Subject to sufficient exploration funding) û Further consolidation of Rukwa Coal Field. | û Geographical Survey on the Resources was completed during Q4, 2013. û DFS in process. û Financial Close of the RCPP on track. û Coal Supply Agreement and Power Purchase Agreement negotiations in process. û Financial modelling of the power station in process. û Coal to Liquid ( CTL) evaluation scheduled for later FY 14. û Exploration on the Ngaka Coal Field on Care and Maintenance pending adequate funding. û Further consolidation of Rukwa Coal Field to commence, upon finalizing agreement with a Joint Development partner for RCPP |
GOLD
Strategic Goals 2014 | |
ð Resource expansion and upgrade at Imweru and Lubando. ð Develop resources at one or more of the following: û Morogoro South û Pamba û Sheba û Mahangu. ð Advance Imweru and/or Lubando to Scoping Study level. | Operational plans prepared and in the process of implementation as dictated by available funding. |
NICKEL
Strategic Goals 2014 | |
To drill the targets identified and confirmed during the 2013 exploration campaign. | Care and Maintenance Programme at present - scheduled to recommence with exploration work during Q3 2014 |
URANIUM
Strategic Goals 2014 | Update |
Continue to search for suitable JV Partner whilst maintaining Care and Maintenance Status | Care and Maintenance Programme in Place |
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 Rukwa, which has a significant JORC compliant defined resource, and is developing a 250-350MW mouth-of-mine thermal power station with an established management team that includes Standard Bank as Financial Advisor.
Kibo also holds the Haneti Licence on which the latest technical report confirms prospectivity for nickel, PGMs, gold and strategic metals.
The Company also has extensive gold focused interests including Lake Victoria Goldfields and Morogoro projects. At Lake Victoria, the Company has projects with a substantial existing JORC compliant gold resource and is seeking to materially increase this resource through exploration of known extensions to existing mineralisation.
Kibo Mining also holds the Pinewood (coal & uranium) projects.
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 prioritised 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 recognises 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
Contacts
Louis Coetzee | +27 (0) 83 2606126 | Kibo Mining plc | Chief Executive Officer |
Andreas Lianos | +27 (0) 83 4408365 | River Group | Corporate Adviser and Designated Adviser on JSE |
Jon Belliss Abigail Wayne | +44 (0) 20 3693 1470 | Hume Capital Securities Plc | Broker |
Oliver Morse Trinity McIntyre | +61 8 94802500 +61 8 94802500 | RFC Ambrian Limited | Nominated Adviser on AIM |
Daniel Thöle Lydia Eades | +44 (0) 207 8611606 +44 (0) 207 8613126 | Bell Pottinger | Investor and Media Relations |
Johannesburg
27 May 2014
Corporate and Designated Adviser
River Group
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