Kibo Mining Plc MCPP PPA Update (9847J)
05 April 2018 - 9:51PM
UK Regulatory
TIDMKIBO
RNS Number : 9847J
Kibo Mining Plc
05 April 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: 05 April 2018
Kibo Mining Plc ('Kibo' or the 'Company')
MBEYA COAL TO POWER PROJECT POWER PURCHASE AGREEMENT UPDATE
Kibo Mining Plc (AIM:KIBO; AltX:KBO), the multi-asset
Africa-focused energy and resource company, is pleased to announce
that the Company has received confirmation from the Tanzania
Electric Supply Company ('TANESCO') today that a work session for
the full Power Purchase Agreement ('PPA') task team, has been
convened for Tuesday 10 April 2018. This work session of the full
PPA task team, consisting of representatives of Kibo and TANESCO,
has been convened to finalise work on the various key deliverables
stipulated under the MCPP MOU (See RNS of 14 February 2018) to
date. The meeting will also review the overall progress and
remaining deliverables and milestones stipulated in the MCPP MOU
and discuss and agree steps and measures where necessary, to ensure
that the MOU timeline and action plan is executed in accordance
with what has been agreed therein.
Kibo's CEO Louis Coetzee said: "We are very pleased with the
co-operation and commitment from TANESCO in advancing the PPA
process since signing the MOU, despite extraordinary challenges
experienced by TANESCO over the past three months in
particular.
This work session of the full PPA task team follows a period of
work by the task team that commenced immediately after signing of
the MOU and during which we expect to bring their efforts together
in positive and productive results in respect of the agreed
deliverables stated in the PPA MOU."
**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
Jon Belliss +44 (0) 207 Beaufort Securities Broker
382 8300 Limited
Andrew Thomson +61 8 9480 RFC Ambrian NOMAD on AIM
2500 Limited
Isabel de +44 (0) 207 St Brides Investor and
Salis / Priit 236 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 the Mbeya Coal Mine, a 1.5Mt
p/a mining operation, and the Mbeya Power Plant, a 300MW 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 300MW
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
1.8GW based on annual average coal consumption of 1.5Mt. 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.
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.
Kibo also has an 85% interest in the Mabesekwa Coal Independent
Power Project ('MCIPP'), a nearly identical power project in
Botswana. The project consists of 300Mt subset of the current
in-situ 777Mt Coal Resource and has water and land use permits and
environmental certification in place. A Pre-Feasibility Study on
the coal mine has been completed, as has a Scoping Study, which
highlight the power plant having a maximum capacity of 600MW
(4x150MW) based on a coal delivery rate of 3.2Mtpa and a Life of
Mine of over 30 years.
Johannesburg
05 April 2018
Corporate and Designated Adviser
River Group
This information is provided by RNS
The company news service from the London Stock Exchange
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