| Tue 15 May 2012, 9:36 | | KBO - Kibo Mining Plc - Memorandum of Understanding for Tanzanian Mine Mouth |
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KBO
KBO
KBO - Kibo Mining Plc - Memorandum of Understanding for Tanzanian Mine Mouth
Power Station signed by Mzuri Coal
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: IE00B61XQX41
("Kibo" or "the Company")
Memorandum of Understanding for Tanzanian Mine Mouth Power Station signed by
Mzuri Coal
Shareholders are advised that the Company has been informed by Mzuri Energy
Limited ("MZURI") that MZURI has entered into material negotiations in
relation to its main asset, the Rukwa coal project, as more fully explained
below.
* Mzuri Coal Limited signs Memorandum of Understanding to pursue the
development of a mine mouth power station at its Rukwa Project with large
Asian global conglomerate.
Dated: 15 May 2012
As set out in its announcement on 2 April 2012, Kibo Mining plc ("Kibo" or
the "Company") (AIM: KIBO), (JSE: KBO), the Tanzania focused mineral
exploration and development company, has, subject to various required
statutory and shareholder approvals, agreed to acquire control of MZURI.
Kibo is now pleased to report that Mzuri Coal Limited ("MCL"), a wholly owned
subsidiary of MZURI, has agreed to record a Memorandum of Understanding (the
"MOU") with a large Asian Conglomerate (AC), to pursue negotiations forthwith
with a view to entering into definitive agreements providing for the
development of a mine and a 250-350 MW mine mouth coal fired power station on
MCL`s Rukwa Coal Project ("Rukwa Power Project") near Mbeya as soon as
practicable (the "Development Agreements").
Proposed Transaction Framework
The Development Agreements, if concluded and implemented, would provide for
the the following salient elements:
* MCL would provide the AC with all available technical data and expertise
to enable the AC to conduct a comprehensive feasibility study on the
development of a Rukwa Power Project. If found feasible, MCL would develop a
thermal coal mine and enter into a long term off-take agreement with the AC
or its nominee to supply the Rukwa Power Project with coal sufficient for its
requirements.
* The AC would undertake comprehensive technical, financial and commercial
feasibility studies in respect of the Rukwa Power Project. If found to be
feasible, The AC would procure all required approvals and permits for the
construction, commissioning and operation thereof and design, build and
operate a mine mouth coal fired power plant on the Rukwa Power Project.
* The AC would procure an Independent Power Producer ("IPP") license from the
Electricity and Water Utility Regulatory Agency of Tanzania ("EWURA") and a
Power Purchase Agreement ("PPA") from the Tanzanian National Electricity
Supply Company ("TANESCO").
* The parties would have the opportunity to co-invest reciprocally in the
equity of the mine and the power plant respectively on terms to be agreed
between them.
Rationale
Commenting on the MOU, Kibo CEO Louis Coetzee said:
"This development once again highlights Tanzania as an African investment
destination of preference for major international industrial groups. It also
validates Kibo`s decision to focus its resources and skills here, and to take
the bold step to acquire a progressive explorer and developer like Mzuri that
has developed a track record of meaningful engagement and value creation in
the region over time through multilateral collaborative relationships. "
Mzuri chairman Tinus Maree added:
"This relationship could provide an excellent platform for Mzuri to expedite
the development of some of its more advanced energy assets to the benefit of
the participants` respective shareholders and, equally importantly, to the
people of Tanzania. There is a clear imperative to develop strategic
infrastructure projects as catalysts to broader regional economic development
in other sectors the region, and we are keen to participate in these
endeavours from within the enlarged Kibo team"
Enquiries:
Louis +27 (0)83 Kibo Mining Chief Executive
Coetzee 2606126 plc Officer
Stuart Laing +61 8 9480 RFC Ambrian Nominated Adviser
2506 Limited
Andreas Lianos +27 (0)83 River Group Corporate Adviser
4408365 and DA on JSE
Nick Bealer +44 (0)207 Cornhill Broker (Corporate
7109612 Capital Ltd Broking)
Matt Beale +44 (0)7966 Fortbridge Public Relations
389196
Updates on the Company`s activities are regularly posted on its website
www.kibomining.com
General Background & Strategy
Kibo is a public company registered in Ireland (company number 451931). Its
registered office is Kibo Mining plc, Suite 3, One Earlsfort Centre, Lower
Hatch Street, Dublin 2, Ireland. Kibo was established in early 2008 to
explore and develop mineral deposits in Tanzania, East Africa and was
admitted to AIM on 27 April 2010 and AltX in South Africa on 30 May 2011.
The Board of Kibo is composed of professionals whose experience include
mineral exploration, mine development, mining finance, tax, law, mergers and
acquisitions, and financial control of public companies. It is supported by a
competent and motivated Tanzanian staff that operates from Kibo`s operations
office in Dar es Salaam.
The mineral assets of the Company comprise three existing and two newly
acquired projects in Tanzania - Haneti (nickel, PGE and gold), Morogoro
(Gold) and Lake Victoria (Gold) which give Kibo access to over 18,000 km2 of
early stage exploration licences in Tanzania`s premier gold mining region,
the Lake Victoria Goldfield and within the newly emerging gold exploration
regions in eastern Tanzania. The Company has recently also acquired, subject
to certain suspensive closing conditions and approvals, coal and uranium
exploration projects as publicly announced on 2 April 2012 in accordance with
its multi-commodity exploration strategy.
Kibo`s objective is to build shareholder value in a sustainable manner. This
objective will be pursued primarily through active exploration of its own
projects and by using the Company`s experience in Tanzania to acquire
attractive exploration and development assets on competitive terms that can
be moved swiftly up the value curve by using the company`s own skills base
whilst also seeking to benefit from strategic collaborative relationships
with industry leaders who have special skills and competencies within their
chosen fields of focus. Kibo will undertake continual risk assessment of its
projects and take whatever actions it believes are necessary to ensure that
these risks are mitigated.
London
15 May 2012
Corporate and Designated Advisor
River Group
Date: 15/05/2012 09:36:01 Produced by the JSE SENS Department.
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