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")
30th March 2017
Kibo Initiates Diversified Production Strategy for Mbeya Coal Mine
Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX: KBO), the Tanzania focused mineral exploration and development Company is pleased to announce that the Company has decided, after careful study of the MCPP Integrated Bankable Feasibility Study ("IBFS") results as well as latest policy changes in Tanzania, to implement a diversified production strategy for the Mbeya Coal Mine. This strategy will see Mbeya Coal LTD develop its coal mine to produce coal for the Mbeya power plant as its primary client, with the domestic coal market as a secondary client. The Company has already engaged with the domestic market in this regard with very positive response thus far.
Share Issue
The Company has today issued 277,768 new Ordinary Kibo shares of €0.015 par value each in the capital of the Company (the "Settlement Shares") to service providers in settlement of invoices for a total amount of £13,194. The Settlement Shares were issued in respect of invoices for recent geological and investor relations services to the Company and were issued at a price of 4.75p per Kibo share.
Application will be made for the Settlement Shares to be admitted to trading on AIM and the JSE AltX markets. Trading in the Shares is expected to commence on AIM and the JSE on or around Wednesday 5th April 2017 ("Admission"). On completion of Admission the Company will have 364,254,364 shares in issue.
UK Investor Show
The Company is also pleased to announce that it will be exhibiting and presenting at the UK Investor Show being held at the Queen Elizabeth II Conference Centre in London, on Saturday 1st April 2017 (9 am to 5 pm). Details on the UK Investor Show can be found on the organizer's website: https://www.UKInvestorshow.com/. Kibo will have a stand at Stand 77, Fleming Suite and the Company's CEO will be giving a presentation in the Miers Room (part of Fleming Suite) at 3 p.m. Investors wishing to view the Company's corporate presentation that will be presented at the conference can do so on its website: http://www.kibomining.com.
Louis Coetzee, CEO of Kibo Mining, said: "Our decision to adopt a diversified production strategy for the Mbeya coal mine follows from the results of the Definitive Mining Feasibility Study, where we specifically investigated parallel commercial opportunities in addition to producing coal for the Mbeya power plant only, the ultimate results from the IBFS, as well as latest policy changes in Tanzania. An integrated consideration of all these aspects shows that a diversified production strategy is indeed feasible and has potential to significantly enhance the economics of the Mbeya coal mine and which could allow the mine to be put into production earlier than planned for the MCPP.
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 Belliss |
+44 (0) 207 382 8300 |
Beaufort Securities Limited |
Broker |
Oliver Morse |
+61 8 9480 2500 |
RFC Ambrian Limited |
Nominated Adviser on AIM |
Liz Morley / Anna Legge |
+44 (0) 203 772 2500 |
Bell Pottinger |
Investor and Media Relations |
Kibo Mining - Notes to editors
Kibo Mining is listed on the AIM market in London and the AltX in Johannesburg. The Company is focused on exploration and development of mineral projects in Tanzania, and controls one of Tanzania's largest mineral right portfolios. Tanzania provides a secure and stable operating environment for the mineral resource industry and Kibo Mining therein.
Kibo Mining holds a thermal coal deposit at Mbeya, which has a significant NI 43-101compliant defined resource, and is developing a 250-350 MW mouth-of-mine thermal power station, the Mbeya Coal to Power Project ("MCPP"), previously called the Rukwa Coal to Power Project ("RCPP"), with an established management team that includes ABSA / Barclays as Financial Advisor. Kibo has completed a Coal Mining Definitive Feasibility Study and a Power Pre- Feasibility Study for the Mbeya project and has recently announced the completion of an Integrated Bankable Feasibility Study report for the project. On 25 August 2016, Kibo signed an Agreement with China based EPC contractor SEPCO III granting it the right to become the sole bidder for the EPC contract to build the power plant component of the MCPP in exchange for SEPCO III refunding 50% of the development costs incurred by Kibo to date on the project. Kibo has already received the first tranche of this funding in the amount of US$1.8 million on the 5th September 2016 and signed an EPC contract with SEPCO III on the 19th December 2016.
The Company also has extensive gold focused interests in Lake Victoria Goldfields of northern Tanzania, including 100% owned projects with a 515,000 oz. JORC compliant gold Mineral Resource at the Imweru Project and a 240,000 oz. JORC compliant gold Mineral Resource at the Lubando Project. The Company is currently undertaking a Definitive Feasibility Study on its Imweru Project.
Kibo also holds the Haneti Project on which the latest technical report confirms prospectivity for nickel, PGMs, gold and strategic metals including lithium.
The Company's projects are located in the established and gold prolific Lake Victoria Goldfields and the Mtwara Corridor in southern Tanzania where the Government has prioritized infrastructural development attracting significant recent investment in coal and uranium. The Company has a positive working relationship with the Tanzanian government at local, regional and national levels and works hard to maintain positive relationships with all communities where company interests are held. The Company recognizes the potential to enhance the quality of life and opportunity for Tanzanian citizens through careful development of its projects.
Updates on the Company's activities are regularly posted on its website www.kibomining.com.
This announcement contains inside information as stipulated under the Market Abuse Regulations (EU) no. 596/2014 ("MAR").
Johannesburg
30 March 2017
Corporate and Designated Adviser
River Group
