Kibo Mining : Benga JV Finalised and Feasibility Study Commences on Mozambique Power Project

28 June 2018

Kibo Mining plc (AIM: KIBO; AltX: KBO), the multi-asset Africa focused energy and resource company, is pleased to announce, further to the RNS of 6 June 2018, that it has finalised the Joint Venture Agreement ('JV') with Mozambique energy company Termoeléctrica de Benga S.A. ('Termoeléctrica') regarding the development of the Benga Independent Power Project ('Benga', 'BIPP', or 'the Project'). This agreement includes the right to construct and operate a 150-300MW coal fired power station and is synergistic with the Company's other two projects, the Mbeya Coal to Power Project ('MCPP') in Tanzania and the Mabesekwa Coal Independent Power Project ('MCIPP') in Botswana.

With the JV finalised, a full feasibility study on Benga has commenced, designed to confirm its commercial and operational viability; it will include a Pre-Feasibility Study ('PFS'), Definitive Feasibility Study ('DFS') and an Environmental Impact Assessment ('EIA'), in addition to economic assessments, which will include a comprehensive financial model.

Furthermore, formal discussions regarding a Power Purchase Agreement ('PPA') between Kibo and prospective off-takers of the BIPP have been initiated. Notably, discussions with, and formal letters of comfort already received from; various power supply off-takers have indicated an initial demand for up to approximately 150MW; thermal coal producers have stated a willingness and intent to discuss terms and conditions for the supply of thermal coal as a feedstock for the planned power plant.

Louis Coetzee, CEO of Kibo Mining, said: 'With all the JV conditions met in a very short time frame, we are going full steam ahead with the development of Benga with the commencement of a comprehensive feasibility study. Utilising our experience gained from the development of the MCPP as well as the strategic positioning of the BIPP, we are able to immediately commence the PPA discussions. With letters of comfort for 150MW from multiple power supply off-takers in place and thermal coal producers stating terms and conditions to supply the plant with necessary coal, we are in a strong position to expedite the development of the BIPP.

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