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: 22 June 2018
Kibo Mining Plc ('Kibo' or the 'Company')
Sale of Haneti Nickel Project
Kibo Mining Plc (AIM:KIBO; AltX:KBO), the multi-asset Africa focused energy and resource company is pleased to announce that its wholly owned subsidiary Kibo Mining (Cyprus) Ltd (the 'Seller') has sold Kibo Nickel Limited ('Kibo Nickel') to Katoro Gold Ltd ('Katoro') in an all share transaction ('the Sale'). This is in line with Kibo's strategy of becoming a major regional power player in Africa as the Sale allows it to focus on its three energy projects currently in development.
Louis Coetzee, Kibo's CEO said, "In line with our strategy focused on becoming a major regional power player in Africa, we believe that, whilst Kibo Nickels' project is very exciting, it can be better advanced within Katoro. We continue to make progress advancing our strategy, highlighted by the acquisition announced on 6 June 2018, which expands our reach into Mozambique. Thanks to our experience in the sector and close relationships with international development partners, including General Electric and SEPCO III, we are becoming a preferred development partner for strategic power projects in the region. Going forward, our full focus will be on developing our initial three energy projects and delivering value to shareholders by capitalising on the acute power shortage in the region."
Terms of the Sale
Under the terms of the Sale, Kibo has sold its wholly owned subsidiary, Kibo Nickel, a private company incorporated in the Republic of Cyprus, to Katoro for 15,384,615 new ordinary shares in Katoro at a price of 1.3p per share (valued at £200,000) ('Consideration Shares'). The Consideration Shares will be issued to Kibo upon transaction completion and will rank pari passu with the existing Ordinary Shares. Kibo will also retain a 2% NSR royalty in respect of nickel or mineral concentrates produced and sold from any of Kibo Nickel's properties.
The Sale is subject to the Parties having received the approval of any regulatory authority with jurisdiction regarding the transaction and whose approval is required to implement its provisions.
Transaction completion will take place at 14:00 London time on the fourth Business Day after the fulfilment of the last of the conditions, or such other date as the Seller and Katoro may agree to in writing, at the offices of Katoro's London Solicitors, Messrs Druces LLP of Salisbury House, London Wall, London, EC2M 5PS ('Completion'). The Long Stop Date for the transaction is 1 September 2018, which date may be extended by agreement in writing between the Parties.
Separately, the Company has participated in the placement announced today by Katoro and subscribed for 5,769,231 ordinary shares in Katoro at a placement price of 1.3p per share (total cost of £75,000). Kibo's holding in Katoro (not including the Consideration Shares, which are yet to be issued) is now 67,602,564 shares representing an interest of 50.43%.
The Company is focused on building a geographically diversified portfolio of strategically located energy production assets spanning the entire spectrum of electricity generation across Africa that can solve the increasing acute energy shortages on the continent. The Company seeks to contribute in a meaningful way to the energy demand across three countries in southern Africa: Tanzania, Botswana and Mozambique. Its flagship asset is the MCPP in Tanzania, which comprises the development of the Mbeya Coal Mine, a 1.5Mt p/a mining operation and the Mbeya Power Plant, a 300MW mine-mouth thermal power station anticipated to be in production in 36 months from the date of achieving financial close. It also holds an 85% interest in the Mabesekwa Coal Independent Power Project in Botswana on which feasibility studies are well advanced. Most recently, Kibo announced a joint venture in Mozambique, to participate in the further assessment and potential development of the Benga Independent Power Project, including the right to construct and operate a 150-300MW coal fired power station.
**ENDS**
For further information please visit www.kibomining.com or contact:
Louis Coetzee |
[email protected] |
Kibo Mining Plc |
Chief Executive Officer |
Andreas Lianos |
+27 (0) 83 4408365 |
River Group |
Corporate and Designated Adviser
on JSE |
Ben Tadd /Tom Curran |
+44 (0) 20 3700 0093 |
SVS Securities Limited |
Joint Broker |
Jon Belliss |
+44 (0) 20 7399 9400 |
Novum Securities Ltd |
Joint Broker |
Andrew Thomson |
+61 8 9480 2500 |
RFC Ambrian Limited |
NOMAD on AIM |
Isabel de Salis / Priit Piip |
+44 (0) 20 7236 1177 |
St Brides Partners Ltd |
Investor and Media Relations 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.
To assist in the execution of its power projects, 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'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 a power output target of 1,800 GWh/a 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.
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.
Furthermore Kibo also has a Joint Venture agreement with Mozambique energy company Termoeléctrica de Benga S.A. ('Termoeléctrica') to participate in the further assessment and potential development of the Benga Independent Power Project ('BIPP'), including the right to construct and operate a 150-300MW coal fired power station. Kibo and Termoeléctrica shall hold initial Participation Interests in the unincorporated joint venture of 65% and 35% respectively.
Johannesburg
22 June 2018
Corporate and Designated Adviser
River Group
