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27 Feb 2018 16:34
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')
Dated: 27 February 2018
Kibo Mining Plc ('Kibo' or the 'Company')
Press Speculation
Kibo Mining plc (AIM: KIBO; AltX: KBO), the multi-asset Africa-focused energy and resource company, announces that, contrary to press speculation, the Company has not yet signed a Power Purchase Agreement ('PPA') with Tanzania Electric Supply Company ('TANESCO'), however it remains in advanced discussions with TANESCO and the Ministry of Energy regarding the PPA for its flagship 300MW Mbeya Coal to Power Project ('MCPP'). The PPA will enable Kibo to move towards execution and conclusion of the final development phase of the MCPP.
**ENDS**
For further information please visit www.kibomining.com or contact:
Louis Coetzee | louisc@kibomining.com | 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) 20 7382 8300
| Beaufort Securities Limited | Broker |
Andrew Thomson | +61 8 9480 2500 | RFC Ambrian Limited | NOMAD on AIM |
Isabel de Salis / Priit Piip | +44 (0) 20 7236 1177 | St Brides Partners Ltd | Investor and Media Relations Adviser |
This announcement contains inside information as stipulated under the Market Abuse Regulations
(EU) no. 596/2014 ("MAR").
Notes to editors
The Mbeya Coal to Power Project ('MCPP'), comprises the development of the Mbeya Coal Mine, a 1.5Mt p/a mining operation and the Mbeya Power Plant, a 300 MW mine-mouth thermal power station.
The Mbeya Coal Mine has a defined 120.8 Mt NI 43 101 thermal coal resource. A Definitive Feasibility Study has been conducted on the project which underpins its value with an indicated IRR of 69.2%. The 300 MW mouth-of-mine thermal power station has long term scalability to 1000MW, with a full Power Feasibility Study that has been completed, highlighting an annual power output target of 1.8 GW based on annual average coal consumption of 1.5 Mt. An Integrated Bankable Feasibility Study report for the entire project indicated total potential revenues of US$ 7.5-8.5 billion over an initial 25-year mine life, post tax equity IRR between 21-22%, debt pay-back period of 11-12 years and a construction period of 36 months.
To assist in the execution of this critical power project of the MCPP, Kibo has assembled an international team of advisors and partners including Engineering Procurement and Construction ('EPC') contractors and financial teams that are assisting in the advancement and development of the MCPP. These include ABSA/Barclays as Financial Advisor, China based EPC contractor SEPCO III, General Electric, Tractebel Engineering (Power), Minxcon Consulting (Mining) and legal advisors Norton Rose Fulbright.
Johannesburg
27 February 2018
Corporate and Designated Adviser
River Group
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