1st Apr 2016 08:15
LONDON (Alliance News) - Kibo Mining PLC on Friday said it has finished the eagerly-awaited definitive feasibility study for the power element of its Mbeya coal-to-power project in Tanzania, but said it must review the study before it can release its findings.
"Results from the definitive power feasibility study can only be announced once the review process has been completed, but we can at this stage state that all the [study] outcomes to date have been well within our expectations," said Chief Executive Louis Coetzee.
Kibo is developing the Mbeya project in two parts, one which focuses around the mining element of the operation, which will supply coal to the second part of the project, a power plant that will feed the domestic market.
A separate definitive feasibility study is being carried out for the mining element of the project, which Kibo has previously said would come "slightly later" than the study concerning the power element of the project.
Those two studies, plus other studies, are being combined to form an integrated bankable feasibility study which will allow the company to push the project to financial close.
Kibo is expecting the integrated study to be completed during the "latter part" of the second quarter of 2016, allowing it to reach financial close before the end of the first half, which is slightly later than originally planned.
Although progress toward financial close is taking longer than expected, Kibo has previously stressed this won't impact the overall timeline for the project.
Kibo suffered an 11-month delay to receiving the funds raised through a placing back in February 2015 from Hume Capital and also had to align its schedule with the various government approvals and permitting processes.
Kibo shares were down 4.0% to 3.60 pence per share on Friday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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