9th Sep 2014 07:40
LONDON (Alliance News) - Kibo Mining PLC shares were given a boost in early trade on Tuesday after the company said the preliminary economic and technical evaluation undertaken at the Rukwa coal to power project confirms the mining viability of the site.
Shares in Kibo were up 2.4% to 2.10 pence in early trade, putting it among the biggest risers in the AIM All-Share index. The stock touched 2.20p soon after the open.
The Tanzania-focused minerals company said the early economic and technical evaluation at the Rukwa site in Tanzania confirmed the strong project fundamentals. The base case for Rukwa supports a 300 megawatt coal-fired power plant with an initial 20-year life and beyond.
It said the definitive mining feasibility study was progressing quickly, and the process of selecting suitable consultants for the Rukwa Power Plant was being accelerated, with the first phase and first stage of the study ahead of schedule at present. In addition, it said progress is being made on finalising the heads of terms on the power purchase, coal sale and grid connection agreements for the site.
"We are delighted with the latest results of the ongoing work at Rukwa, and the rapid progress the company is making at the moment," said Kibo Chief Executive Louis Coetzee.
"The progress made with Phase 1, Stage 1, of the Rukwa DMFS confirms the robust technical and economic fundamentals of the project and its suitability to support a 300MW power station for up to 40 years," Coetzee added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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