Kibo Mining plc – Tanzanian Government Deplace Support for Rukwa Coal to Power Project

Kibo Mining plc – Tanzanian Government Deplace Support for Rukwa Coal to Power Project

2014-06-18T20:08:53+00:00March 11th, 2013|

Tanzanian  Government  Declares  Support  for  Rukwa  Coal  to  Power  Project: Commitment for Proactive Participation and Elevation of Power Project To Strategic Status In Tanzanian National Energy Strategy.

The  board  of  Kibo  Mining  Plc  (the  “Company”)  is  pleased  to  report  that  it  has  received  a formal  notification  letter  from  the  Tanzanian  Ministry  of  Energy  and  Minerals  (“MEM”) dated 8 March 2013, in which, based on the MEM’s initial assessment of the Project and the key role it could play as a regional power hub, notifies the Company that:

•  The  Rukwa  Coal  to  Power  Project  will,  with  immediate  effect,  be  included  as  a strategic component of the Tanzanian Government’s National Energy Strategy; and

•  The  MEM  undertakes  to  “participate  proactively  in  procuring  the  establishment  of this vital infrastructure node in the Mbeya region”; and

•  The MEM confirms its support for the expedited development of the Project to Kibo and its development partners.

The period of exclusivity  enjoyed by  the Asian  conglomerate with which Mzuri Energy,  a subsidiary  of  the  Company,  had  previously  entered  into  a  non  binding  Memorandum  of Understanding regarding the possible joint development of the project (RNS dated 15 May 2012) has since expired. The latest status of discussions with the Tanzanian Government now allows  the  Company  to  conclude  the  final  selection  process  in  respect  of  an  appropriate development  partner  acceptable  to  the  Company  as  well  as  the  Tanzanian  Government.  A further announcement in this regard will be made as soon as possible.

Louis Coetzee, Chief Executive Officer of the Company commented:

“Kibo is delighted by the  strong  support  for  the  Rukwa  Coal  to  Power  Project  expressed  by  the  Tanzanian Government. The most significant milestone in Kibo’s efforts since re-admission to AIM is undoubtedly  the  inclusion  of  its  flagship  project  in  the  Government’s  National  Energy Strategy.  This,  together  with  the  Government’s  unequivocal  commitment  to  participate proactively in the expedited development approach adopted by the Company, vindicates the unwavering  support  that  the  Company  has  enjoyed  from  its  major  shareholders  and  other long-term value investors, during a very difficult  time. The Rukwa project is intended to be one  of  the  cornerstones  of  a  regional  infrastructure  development  node  on  the  Western gateway  of  the  Mtwara  Corridor.  The  Company’s  stated  policy  of  aligning  its  projects  at operational  level  with  respected  industry  veterans  with  a  proven  understanding  of  their chosen fields of operation will also guide the final selection of a suitable development partner for  the  generation  side  of  the  power  project.  We  are  honoured  to  have  this  opportunity  to continue to build value for our shareholders and the people of Tanzania.”

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 Bellis +44 (0) 207 1017070 XCap Securities plc Joint Broker
Matthew Johnson +44 (0) 207 9768800 Northland Capital Partners Limited Joint Broker
Stuart Laing +61 8 94802500 RFC Corporate Finance Limited Nominated Adviser on AIM
Matt Beale +44 (0)7966 389 196 Fortbridge Public Relations

 

General Background & Strategy

Kibo was established in early 2008 to explore and develop mineral deposits in Tanzania, East Africa and was admitted to AIM on 27 April 2010 and AltX in South Africa on 30 May 2011. The Board of Kibo is composed of professionals whose experienceinclude mineral exploration, mine development, mining finance, tax, law, mergers and acquisitions, and financial control of public companies. It is supported by competent and motivated Tanzanian staffsthat operate from Kibo’s operations office in Dar es Salaam.

The mineral assets of the Company now comprise fiveprojects in Tanzania – Haneti (nickel, PGE and gold), Morogoro (Gold), Lake Victoria (Gold), Rukwa (Coal) and Pinewood (Coal & Uranium) which give Kibo access to 38,000 km2 of early stage exploration licences in Tanzania’s premier gold mining region, the Lake Victoria Goldfield, within the emerging gold exploration regions in eastern Tanzania and uranium and coal regions in south-western Tanzania.

The Rukwa and Pinewood projects provide Kibo shareholders with exposure to an attractive portfolio of strategic energy assets in Tanzania. Importantly, they are situated within and close to the Mtwara Corridor, an area where the Tanzanian Governmenthas committed to significant infrastructure development and which has seen recent multi-million dollar investment in coal and coal-fired power stations and uranium exploration.

The Rukwa project has a significant Mineral Resource of thermal coal already defined. This provides nearer term development and commercialisation potential, complementing the other earlier stage exploration projects held by Kibo. This is further supported by the memorandum of understanding that has already been entered into with a major Asian conglomerate for the development of a coal mine and mine-mouth coal-fired power plant based on the Rukwa project.

In addition, the Pinewood project encompasses a significant ground holding of prospective Karoo sequence sedimentary rocks. These sediments are attracting considerable interest from international companies exploring for uranium and coal mineralisation following some notable discoveries in
recent years.

Kibo’s objective is to build shareholder value in a sustainable manner. This objective will be pursued primarily through active exploration of its own projects and by using the Company’s experience in Tanzania to acquire attractive exploration and development assets on competitive terms that can be moved swiftly up the value curve by using the Company’s own skills base whilst also seeking to benefit from strategic collaborative relationships with industry leaders who have special skills and competencies within their chosen fields of focus. Kibo will undertake continual risk assessment of its projects and take whatever actions it believes are necessary to ensure that these risks are mitigated.

Johannesburg
11 March 2013
Corporate and Designated Adviser
River group

 

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AIM Share Price
(Ticker: KIBO)
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