Kibo Energy PLC

Management Reports • Jan 23, 2014

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RNS Number : 3460Y

Kibo Mining Plc

23 January 2014

Kibo Mining Plc

(Incorporated in Ireland)

Registration Number: 451931

(External registration number: 2011/007371/10)

Share code on the JSE: KBO

Share code on the AIM: KIBO

ISIN: IE00B61XQX41

("Kibo" or "the Company")

January 23, 2014

Shareholder Update:  Financial Year 2013/14

Kibo Mining plc ("Kibo" or the "Company") (AIM: KIBO; AltX: KBO), the diversified mineral exploration and development company, developing an advanced stage coal resource and coal fired power plant in Tanzania, alongside fully owned gold, nickel, and uranium projects, is pleased to provide the comprehensive Shareholder Update below.

Louis Coetzee, C.E.O. of Kibo Mining commented:

"We are pleased to provide shareholders with an update on Kibo's progress during 2013 and planned objectives for 2014, specifically focused on advancing the Company's current key coal and gold projects as well as opportunistically considering new low entry price project opportunities in Tanzania. Kibo had a successful 2013, and we achieved the following key milestones:

·      Complete restructuring of board and executive management team

·      The Rukwa coal fired power project received Tanzanian government support, included in the Tanzanian Strategic National Energy Plan and attracted serious interest from various international development partners

·      The company signed an MOU on Rukwa with EWP

·      800,000oz of gold resource added with acquisition of Imweru and Lubando

·      The successful completion of three equity placements

·      Kibo now debt free and with enhanced financial flexibility following innovative settlement of all debts

·      Initiate the RCPP Project Development Stage

CORPORATE  

Strategic Objectives 2013	2013 Objectives Achieved	Strategic Goals  2014
Establish and align optimised structure, capability and capacity to execute the Kibo corporate strategy	Complete Board Restructuring	Strategic Goal 1 :  Organic Growth û to increase existing mineral resources on both qualitative and quantitative levels û to add at least two new resource statements in either gold or coal Strategic Goal 2 : Leveraged Growth û To complete DFS on Rukwa Coal Mine û To complete PFS on Rukwa Power û To advance at least one gold project to Scoping Study level û To add at least one new strategic resource through further consolidation of existing exploration assets Strategic Goal 3:  To implement an enhanced IR and PR strategy Strategic Goal 4: To maintain and further improve upon existing high standards of financial and corporate management
Complete Management Restructuring
Complete Capital Restructuring
Complete Restructuring Of Broking, IR and PR services
Completed 3 Successful Equity Placements
Innovative settlement of all historic and current debts and expansion of financing options.   (Kibo currently completely debt free)

COAL 

Strategic Objectives 2013	2013 Objectives Achieved	2013 Redirected Objectives	Strategic Goals  2014
Acquire Tanzanian Government Support	Letter Of Support from Tanzanian Ministry Of Energy And Minerals (MEM) RCPP included in Tanzanian Strategic National Energy Plan Repeated Expressions Of Support from Tanzanian Government		ð Complete upgrade to measured category (Rukwa) ð Continuation  of RCPP Project Development Phase û  Completion of DFS at Rukwa Coal (Q1 2015) û  PFS at Rukwa Power (Q 2015) û  Financial Close of the RCPP (mid - 2015) û  Development and negotiation of Coal Supply agreements and Power Purchase agreement (Q2, 2014) û  Financial modelling of mine and power station û  Evaluation of potential for "Coal to liquid", coal seam gas production and coal export on future resource extension ð Expansion of existing Coal Assets û  Declare  resource at Ngaka (Subject to sufficient exploration funding) û  Further consolidation of Rukwa Coal Field
Identify And Engage Suitable Development Partner for RCPP	MOU signed with EWP
Negotiate and advance JV arrangements with selected Development Partner		ð Advance negotiations towards finalising JV agreement for the development of RCPP. Negotiation process proved to both sides that further feasibility work is imperative for the definition and establishment of sound commercial terms without which the envisaged JV agreement cannot be finalised ð Subsequent to announcing the EWP MOU, strong interest from numerous other potential development partners was received, confirming a much wider international interest from potential developers than originally anticipated. The events stated above compelled Kibo to re - assess and redirect its strategic course for the RCPP.  This was done to ensure that proper advantage could be taken of the opportunity to negotiate and settle for the best possible commercial terms with the best possible development partner. The following strategic decisions embody the redirected development course for the RCPP: ð Decision no 1: Postpone finalisation of JV agreement and planned site visits, ð Decision no 2: Assess, evaluate and engage alternative development partners other than EWP ð Decision no 3: Initiate feasibility studies in parallel to the activities described in Decision no 1 and 2, above ð Decision no 4: Appoint Executive Management team for the RCPP (REMT)* ð Decision no 5: Fund scoping stages of feasibility (Mining and Power) from own resources and subsequent stages, ie PFS and DFS from Project Funding Notes to decisions: û  During September - November, 2013 Kibo established the necessary policy and process to engage with more than one potential development partner. To date, Kibo received firm expressions of interest from 5 more potential development partners, all with exceptional credentials and proven international track records in the development of projects like the RCPP. In addition to EWP all five interested parties have been engaged by Kibo, and are currently reviewing the RCPP û  Feasibility Studies on mining and power will first and foremost facilitate firm commercial terms for the eventual definitive Joint Venture agreement with the development partner(s) best suited for the development of the RCPP û  Discussions and negotiations with regards to project funding is well advanced and progressing satisfactory
Establish adequate financial capacity for the RCPP	Appointment of Standard Bank as financial advisor	Financial modelling in progress
Initiate RCPP Project Development Phase	Complete comprehensive Project Development Plan Resource Upgrade In process Request for proposals on mining and power FS;s Appointment of REMT
	* Refer to RNS dated October 08, 2013

GOLD 

Strategic Objectives 2013	2013 Objectives Achieved	Strategic Goals  2014
Consolidate Portfolio	Relinquishment of licenses* Acquisition of Imweru and  Lubando, adding  800,000 Oz resource	ð Resource expansion and upgrade at Imweru and Lubando ð Develop resources at one or more of the following: û  Morogoro South û  Pamba û  Sheba û  Mahangu ð Advance Imweru and/or   Lubando to Scoping Study level
Further Development Of Consolidated Portfolio	Completion of Phase 1 drilling at Imweru gold project ** Identification of seven additional exploration drill targets in Lake Victoria and Morogoro regions
* Refer to RNS dated June 03, 2013 ** Refer to RNS dated January 14, 2014 for drill results

NICKEL 

Strategic Objectives 2013	2013 Objectives Achieved	2013 Redirected Objectives	Strategic Goals  2014
Consolidate Portfolio	Relinquishment of licenses*
Further Development Of Consolidated Portfolio	Sign JV Agreement	Kibo re-acquired 100% interest in the Haneti nickel-PGM project, after Votorantim Metaís Participações Ltda (Votorantim) opted out of the joint venture with Kibo, through which it was earning into the Haneti project by funding exploration work. Votorantim's decision followed a strategic review of its Southern Africa exploration operations**	To drill the targets identified and confirmed during the 2013 exploration campaign
Successful completion of  Stage 1 Exploration Programme***
* Refer to RNS dated June 03, 2013 ** Refer to RNS dated December 05, 2013 *** Refer to RNS's dated December 13 and 19, 2013

URANIUM

Strategic Objectives 2013		2013 Objectives Achieved	Strategic Goals  2014
Consolidate Portfolio	Relinquishment of licenses*		Continue to search for suitable JV Partner whilst maintaining Care and Maintenance Status
	The portfolio remains in care and maintenance, awaiting market improvement in relation to Uranium
* Refer to RNS dated June 03, 2013.

Kibo Mining - Notes to editors

Kibo was established in early 2008 to explore and develop mineral deposits in Tanzania. The company was admitted to AIM in London on 27 April 2010 and the AltX in Johannesburg on 30 May 2011. The Company is developing the Rukwa mouth-of-mine thermal power station and controls one of Tanzania's largest mineral right portfolios, including the - Haneti (nickel, PGE and gold), Morogoro, Lake Victoria (Gold), and Pinewood (Coal & Uranium) projects.

Its projects are located both in the established and gold prolific Lake Victoria Goldfields, the emerging goldfields of eastern Tanzania and the Mtwara Corridor in southern Tanzania where the Government has prioritised infrastructural development attracting significant recent investment in coal and uranium.

Kibo's objective is to build shareholder value sustainably. This will be achieved primarily through exploration of its own projects and leveraging the Company's experience in Tanzania to acquire exploration and development assets on competitive terms. The focus is on assets that can be moved swiftly up the value curve whilst benefitting from strategic relationships with industry leaders with special skills and competencies within their chosen fields.

Updates on the Company's activities are regularly posted on its website www.kibomining.com 

Contacts

Louis Coetzee	+ 27 (0)83 2606126	Kibo Mining plc	Chief Executive Officer
Andreas Lianos	+ 27 (0)83 4408365	River Group	Corporate and Designated Adviser on JSE
Jon Belliss	+ 44 (0) 20 3216 2630	XCAP	Broker
Stuart Laing	+ 61 8 94802500	RFC Ambrian Limited	Nominated Adviser on AIM
Daniel Thöle	+44 (0) 207 8611606	Bell Pottinger	Investor and Media Relations

Johannesburg

23 January 2014

Corporate and Designated Adviser

River Group

This information is provided by RNS

The company news service from the London Stock Exchange

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