Dated: 20 April 2015
Kibo Mining Plc (“Kibo” or the “Company”) (AIM:KIBO; JSE AltX: KBO), the Tanzania focused mineral exploration and development company, is pleased to announce that the Company has now signed a Joint Development Agreement (“JDA”) in respect of the Rukwa Coal to Power Project (“RCPP”).
Highlights
- Joint Development Agreement signed for the Rukwa Coal to Power Project;
- Development partner confirmed as SEPCO III of QingDao, China, one of the world’s largest and technically most experienced EPC (Engineering, Procurement and Construction) organisations;
- SEPCO III to contribute up to US$3million towards completing remaining Definitive Feasibility Study work by October 2015;
- Upon successful completion of the Definitive Feasibility Study, the RCPP will be transferred into a Special Purpose Vehicle in which Kibo Mining will hold a minimum equity position of 85%, protecting and retaining maximum shareholder value in the RCPP as it develops;
- Under the agreement Kibo is also able to further release value in the SPV by part disposal of its interest. This will generate cash which can, if required, be used to fund any ongoing RCPP cost contribution, allowing the project to be operationally self-financing for Kibo;
- Financial Close for RCPP expected by December 2015, with construction mobilisation commencing during Quarter 1 of 2016;
- Construction work expected to commence in Quarter 2 of 2016, with completion and first power delivered into the grid, expected by Quarter 1 2019.
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[ott_teaser btn_text=”Download” btn_icon=”icon-right-big” btn_url=”https://kibo.energy/wp-content/uploads/Final-RNS_RCPP-JDA_V3.1_200415.pdf” btn_target=”_blank”]Rukwa Coal to Power Project – Joint Development Agreement Signed[/ott_teaser]