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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