25 August 2016
Kibo Mining plc (“Kibo” or the “Company”) (AIM: KIBO; AltX: KBO), the Tanzania focused mineral exploration and development Company, is pleased to announce that it has signed a new Agreement (the “Agreement”) with major international China based EPC contractor, SEPCO III.
The Agreement establishes a re-defined contractual relationship between SEPCO III and the Company (together “the Parties”) by which SEPCO III can earn the right to become the sole bidder for the EPC contract to build the power plant component of Kibo’s, Mbeya Coal to Power Project (“MCCP”). This Agreement supersedes and replaces the existing Joint Development Agreement currently in force between the Parties (first announced on 20 April, 2015). The principal terms and conditions of the Agreement are:
- SEPCO III to refund Kibo for 50% of the total development costs incurred by Kibo on the MCPP to date (“Development Costs”), with a fixed first tranche in the amount of US$1.8 million to be paid in cash to Kibo, no later than 30 August 2016;
- SEPCO III and the Company to mutually agree by no later than 22 September 2016:
- The final amount that constitutes the Development Costs;
- The final amount to be refunded to Kibo; and
- The date at which the residual refund amount (i.e. final amount to be refunded less the initial US$1.8m first tranche) will be payable to Kibo.
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[ott_teaser btn_text=”Download” btn_icon=”icon-right-big” btn_url=”https://kibo.energy/wp-content/uploads/Final-RNS_MCPP-16th-Update-SEPCO-III_V3.0_240816.pdf” btn_target=”_blank”]Kibo Signs New Agreement with SEPCO III on the Mbeya Coal to Power Project Securing Cash Payment and Avoiding Equity Dilution[/ott_teaser]