Kibo upbeat about review of MCPP feasibility study

File picture: Denis Farrell

File picture: Denis Farrell

Published May 3, 2016

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Johannesburg - Altx and AIM-listed mining company Kibo Mining said the review of the Power Definitive Feasibility Study (PDFS) of Mbeya Coal to Power Project (MCPP) had been completed.

Kibo Mining is a Tanzanian-based minerals exploration and development firm focused on realising value from MCPP and Imweru gold project.

Developments

Kibo holds one of the largest exploration land packages in the country with assets spanning coal, gold, uranium, nickel and platinum group metals.

Kibo chief executive Louis Coetzee said while it was too early to comment as the company was waiting for the official report, he sounded upbeat about the latest developments as the schedule was completed within the budget.

“The PDFS constitutes the most important component of the MCPP and is the foundation for the MCPP’s entire business case. This milestone in the development of the MCPP is a critical achievement in advance of the financial close,” Coetzee said.

He said the company would update the market on the PDFS results upon receipt of the official PDFS report, which was expected to be handed out during a scheduled project meeting with Tractebel Engineering.

The company’s share price gained momentum on Friday on news of the completion, climbing 4.88 percent to close at 5.37p (R1.12) in London.

On the JSE, shares closed at R1.10, after rising 42.86 percent on Thursday.

The company also announced that it had issued new shares to settle invoices.

The 180 778 shares issued at 4.88p each settled invoices from service providers for geological and investor relations services for invoices totalling £8 822.

The company said trading in the shares was expected to commence on AIM and the JSE from today. On completion of admission the company would have 351 605 538 shares in issue.

Kibo achieved another milestone last month when it announced that it had significantly upgraded the status of resources at its Mbeya coal-fired power development.

Resources

A drilling programme has seen the resource overall rise by 10.4 percent to 121 million tons, out of which 20.9 million tons are now considered high confidence measured resources and 88.6 million tons in the next highest indicated category.

Kibo plans to build a 350 megawatt thermal power station at Mbeya.

Kibo controls one of Tanzania’s largest mineral rights portfolios. The company said Tanzania provided a secure and stable operating environment.

Kibo also holds the Haneti project, for which the latest technical report confirms prospectiveness for nickel, gold and strategic metals including lithium.

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