MCPP EPC Update

RNS Number : 1290A

Kibo Mining Plc

03 June 2016

 

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")

03 June 2016

Mbeya Coal to Power Project Commences with Formal EPC Bid Process for Mbeya Power Plant and Mbeya Coal Mine

Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX: KBO), the Tanzania focussed mineral exploration and development company is pleased to announce that feasibility work on the Mbeya Coal to Power Project ("MCPP") has now advanced to a level where the Company can commence with the formal EPC-bid process for both the Mbeya Power Plant and the Mbeya Coal Mine.

On 31 May 2016 the Company met with SEPCO III in Dar es Salaam to initiate the EPC bid process for the Mbeya Power Plant, in accordance with the provisions of the Joint Development Agreement ("JDA") in place between the Company and SEPCO III. The meeting in Dar es Salaam marked the official start of the EPC-bid process and will be followed by a two day work session in Brussels in mid-June. During this second work session, Tractebel Engineering will brief and guide SEPCO III on the EPC bid process and procedure in accordance with the relevant JDA requirements. The first step in this process will require SEPCO III to agree and commit to an equity investment in the MCPP in order to obtain the right to be the sole EPC bidder for the Mbeya Power Plant EPC contract.

In the event that SEPCO III is named as the sole bidder for the EPC contract, SEPCO III's bid will remain subject to various pre-conditions related to price, technical standards, operational standards etc. which must be met for the EPC contract to be awarded. The bid process will take place under the control and supervision of Tractebel Engineering as independent Qualified Person and in accordance with a pre-set, internationally benchmarked specification and standard. If the bid succeeds in meeting the Tractebel Engineering specification it will also require that the bid terms are approved by the Company and any debt providers to the MCPP.

The EPC bid process for the Mbeya Coal Mine is also well under way and the Company will today receive the first EPC budget quotations from eight bidders who have expressed an interest to bid for the Mbeya Coal Mine EPC and mining contract.

Louis Coetzee, CEO of Kibo Mining plc said "The MCPP is now speeding towards completion of the Integrated Bankable Feasibility Study for the MCPP and we are very pleased with progress, but more so with the results from the Power Definitive Feasibility Study as well as the preliminary results from the Mining Definitive Feasibility Study."

Contacts

Louis Coetzee	[phone]	Kibo Mining plc	Chief Executive Officer
Andreas Lianos	[phone]	River Group	Corporate Adviser and Designated Adviser on JSE
Jon Belliss	[phone]	Beaufort Securities Limited	Broker
Oliver Morse	[phone]	RFC Ambrian Limited	Nominated Adviser on AIM
Daniel Thöle / Anna Legge	[phone]	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 Mbeya Coal to Power Project ("MCPP"), 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 20^th 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

03 June 2016

Corporate and Designated Adviser

River Group

 

END

 

 

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