Kibo Announces Commencement of Rukwa Coal to Power Project (“RCPP”) Definitive Mining Feasibility Study
- Kibo appoints Minxcon Projects to conduct RCPP definitive mining feasibility study (“DMFS”)
- RCPP DMFS to commence immediately with Stage 1
- Stage 1 of DMFS to be completed by November 2014.
- Integrated RCPP feasibility study commences simultaneously
- In principle agreement on Joint Development Partnership for RCPP
Kibo Mining plc (“Kibo” or the “Company”) (AIM: KIBO; AltX: KBO), the Tanzania focussed mineral exploration and development company is pleased to announce that it has appointed Minxcon Projects (www.minxcon.co.za), to conduct a DMFS for the RCPP coal mine, thereby officially commencing with the RCPP integrated feasibility study, which will cover development of both the coal mine and co-located thermal power plant. Stage 1 of the DMFS is expected to be completed by November 2014. Stage 1 will cover the conventional pre-feasibility elements associated with a coal mine feasibility study, as well as assessing certain key mining parameters required for the planning of the definitive feasibility study on the Rukwa power plant. The integrated RCPP feasibility study involves the sequential implementation, parallel execution and subsequent integration of the DMFS and definitive power feasibility study (“DPFS”). As part of Stage 1 of the DMFS, the Rukwa Executive Management Team will, over the next four months, also settle the heads of terms for the following key commercial agreements in the RCPP:
- Power Purchase Agreement
- Coal Sale Agreement
- Grid Connection Agreement
During the past month the Company also reached an in principle agreement on the definitive terms and conditions for a joint development partnership in the RCPP. The Company however decided to defer signing of the joint development agreement until completion of Stage 1 of the DMFS. Upon completion of Stage 1 of the DMFS, which will amongst others assess most of the key commercial assumptions in the RCPP, the Company expects to conclude the joint development agreement on more favourable commercial terms. Given these developments and the advanced status of the RCPP, Minxcon have agreed to conduct Stage 1 of the MPFS on a contingency arrangement with the Company.
Louis Coetzee, CEO of Kibo Mining, said: “We are pleased with the latest progress on the RCPP. An enormous amount of hard work was done on the RCPP over the past months and with the official commencement of the integrated RCPP feasibility study covering both the mine and the power station, the project is now poised to rapidly accelerate. Kibo remains focussed on finalizing a partnership agreement to advance development of the project and the commencement of the DMFS will generate significant forward momentum in the coming months.”
|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
|+44 (0) 20 3693 1470||Hume Capital
|+61 8 94802500||RFC Ambrian Limited||Nominated Adviser on AIM|
|+44 (0) 207 8611606
+44 (0) 207 8613126
|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 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.kibo.energy
29 July 2014
Corporate and Designated Adviser
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