Kibo Completes Integrated Financial Model for Mbeya Coal to Power Project
30 November 2016
Kibo Mining plc (“Kibo” or the “Company”) (AIM: KIBO; AltX: KBO), the Tanzania focused mineral exploration and development Company, is pleased to announce that it has received an advanced draft of the integrated financial model for the Mbeya Coal to Power Project (“MCPP”) from its financial advisors ABSA/Barclays.
The model will now be the subject of extensive review and further adjustment, based on the results from the final negotiations with SEPCO III and General Electric (“GE”) on the EPC and OEM bids for the MCPP.
Final negotiations related to the MCPP EPC and OEM contracts are currently under way in Qingdao, China. The Company remains confident that these negotiations will be concluded by 02 December 2016, after which legal counsel will be instructed to convert the terms and conditions agreed upon by the parties into an appropriate EPC/OEM agreement, which is scheduled for signature by the end of December 2016.
Louis Coetzee, CEO of Kibo Mining, said: “Initial results from the MCPP integrated financial model reconfirm the MCPP as a very robust project with strong economic, operational and technical integrity. We have seen a significant improvement on the results from the internal integrated financial model that was prepared after completion of the prefeasibility studies for the MCPP power plant and coal mine respectively.”