Kibo Mining Plc Update on Broker and Placement Proceeds (5484G)
02 March 2018 - 10:45PM
UK Regulatory
TIDMKIBO
RNS Number : 5484G
Kibo Mining Plc
02 March 2018
Kibo Mining Plc (Incorporated in Ireland) (Registration Number:
451931)
(External registration number: 2011/007371/10) Share code on the
JSE Limited: KBO
Share code on the AIM: KIBO ISIN: IE00B97C0C31
('Kibo' or 'the Company')
Dated: 2 March 2018
Kibo Mining Plc ('Kibo' or the 'Company')
Update on Broker and Placement Proceeds
Kibo Mining plc (AIM: KIBO; AltX: KBO), the multi-asset
Africa-focused energy and resource company, notes the announcement
regarding Beaufort Securities Limited ("BSL") and Beaufort Asset
Clearing Services Limited ("BACSL") being placed into insolvency.
Additionally, the Company notes that the Financial Conduct
Authority ("FCA") has also imposed requirements on BSL and BACSL,
with immediate effect, requiring them to cease all regulatory
activity.
BSL is the Company's broker pursuant to AIM Rule 35 and as a
result of the requirements imposed by the FCA BSL is no longer able
to provide broking services to the Company pursuant to AIM Rule 35.
The Company is seeking to appoint a replacement as soon as possible
and a further announcement will be provided upon such an
appointment.
The Company also notes that, further to the announcement dated
27 February regarding a placement for gross proceeds of GBP750,000
(the "Placement"), the application for the Admission to AIM of
17,647,060 ordinary shares in the Company is to be put on hold
until further notice as the Placement was conducted through BSL and
to date the Company has not received any of the Placement
proceeds.
The Company is however urgently seeking further clarification on
the matter, in particular the timeline for the expected release of
the outstanding Placement proceeds to Kibo. An update on this
situation will be provided as soon as more information is
available.
**ENDS**
For further information please visit www.kibomining.com or
contact:
Louis Coetzee louisc@kibomining.com Kibo Mining Chief Executive
Plc Officer
Andreas Lianos +27 (0) 83 River Group Corporate Adviser
4408365 and Designated
Adviser on
JSE
Andrew Thomson +61 8 9480 RFC Ambrian NOMAD on AIM
2500 Limited
Isabel de +44 (0) 20 St Brides Investor and
Salis / Priit 7236 1177 Partners Ltd Media Relations
Piip Adviser
This announcement contains inside information as stipulated
under the Market Abuse Regulations
(EU) no. 596/2014 ("MAR").
Notes to editors
Kibo is a multi-asset resource development and energy company
with a long-term goal of becoming a leading power producer in
Sub-Saharan Africa. The Company aims to tackle the acute power
deficit which is severely hindering economic development in the
region.
Kibo's flagship asset is the Mbeya Coal to Power Project
('MCPP') in Tanzania which comprises of the development of the
Mbeya Coal Mine, a 1.5Mt p/a mining operation and the Mbeya Power
Plant, a 300 MW mine-mouth thermal power station.
The Mbeya Coal Mine has a defined 120.8 Mt NI 43 101 thermal
coal resource. A Definitive Feasibility Study has been conducted on
the project which underpinned its value and confirmed an initial
rate of return of 69.2%. The 300 MW mouth-of-mine thermal power
station has long term scalability with the potential to become a
1000MW plant. The completed full Power Feasibility Study
highlighted an annual power output target of 1.8 GW based on annual
average coal consumption of 1.5 Mt. An Integrated Bankable
Feasibility Study report for the entire project indicated total
potential revenues of US$ 7.5-8.5 billion over an initial 25-year
mine life, post tax equity IRR between 21-22%, debt pay-back period
of 11-12 years and a construction period of 36 months.
At the end of 2017 Kibo agreed to acquire 85% of a nearly
identical power project in Botswana from Shumba Energy in an all
share transaction. Mabesekwa Coal Independent Power Project
('MCIPP') consists of 300Mt subset of the current in-situ 777 Mt
coal resource. Notable synergies between the projects provide
considerable benefits, including economies of scale in equipment,
execution, project finance and strong existing MCPP strategic
partnerships. MCIPP already has water and land use permits and
environmental certification in place and Pre-Feasibility Study on
the coal mine and a Scoping Study on the power plant have been
completed. The power plant will have a maximum capacity of 600 MW
(4x150MW) and based on a coal delivery rate of 3.2 Mtpa and a Life
of Mine of over 30 years.
To assist in the execution of this critical power project of the
MCPP, Kibo has assembled an international team of advisors and
partners including Engineering Procurement and Construction ('EPC')
contractors and financial teams that are assisting in the
advancement and development of the MCPP. These include
ABSA/Barclays as Financial Advisor, China based EPC contractor
SEPCO III, General Electric, Tractebel Engineering (Power), Minxcon
Consulting (Mining) and legal advisors Norton Rose Fulbright.
Johannesburg
02 March 2018
Corporate and Designated Adviser
River Group
This information is provided by RNS
The company news service from the London Stock Exchange
END
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