Last checked at 20 Jul 2016 07:00
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")
20 July 2016
MCPP: O&M Expression of Interest for Mbeya Power Plant
Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX: KBO), the Tanzania focused mineral exploration and development Company is pleased to announce another milestone in the progress of the Mbeya Coal to Power Project ("MCPP") following the finalization of an Expression of Interest process, focused on developing the Operations and Maintenance (O&M) Agreement for the Mbeya Power Plant.
In order to assess the appetite of the market for operation and maintenance services to the 2x150MW Coal Fired Power Plant as part of the MCPP, a Request for Expression of Interest (REOI) was recently launched. The REOI was sent to a number of pre-selected leading service providers in the O&M third party market, on the basis of their established international track record as third party O&M service providers for coal fired power plants.
The REOI received positive expressions of interest from 90% of the companies approached, with one company declining the opportunity on the basis of capacity constraints. This constitutes a positive reaction from the market and indicates strong confidence in the project.
Louis Coetzee, CEO of Kibo Mining, said: "The further development of the Mbeya Power Station, post - DPFS, involves the parallel development and finalization of the EPC and O&M contractual arrangements. We are delighted to note that the response to our invitation for expressions of interest, from leading international O & M providers, indicated a strong market interest in the MCPP, but also confirmed the robustness of the project based on the willingness of prospective O&M contractors to commit for the entire life of plant i.e. 25 years
As we diligently continue with the last remaining work required to finalize the Integrated Bankable Feasibility for the MCPP, we are in parallel finalizing the definitive agreement with Lake Victoria Gold Limited ("LVG") to amalgamate our Imweru gold project with LVG's Imvelo gold project. Further progress updates with regard to both initiatives will follow shortly"
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 |
+44 (0) 207 382 8300 | Beaufort Securities Limited |
Broker |
Oliver Morse |
+61 8 9480 2500 | RFC Ambrian Limited |
Nominated Adviser on AIM |
Daniel Thöle / Anna Legge | +44 (0) 203 772 2500 |
Bell Pottinger |
Investor and Media 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 43-101 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 projects with a 550,000 oz. JORC compliant gold Mineral Resource at Imweru Project and a 168,000 oz. NI 43-101 compliant gold Mineral Resource at the Lubando Project in which the Company holds a 90% attributable interest. 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
20 July 2016
Corporate and Designated Adviser
River Group