29th Sep 2014 07:55
LONDON (Alliance News) - Kibo Mining PLC shares were given a boost in early trade on Monday after the company said it was making progress on the Rukwa coal to power project in Tanzania.
The group said it has reached agreement with the Tanzanian government on terms of reference for the development of the power purchase agreement and grid connection agreement for Rukwa.
In addition, it said it has reached initial heads of terms on the coal-sale agreement for the plant and has now started the detailed financial modelling process for the Rukwa Coal Mine.
"The successful and constructive discussion with Tanzanian government stakeholders over the past week is a further major step forward in the development of Rukwa, with a particularly positive impact on reaching final agreement with potential development partners," said Louis Coetzee, Chief Executive Officer of Kibo Mining.
Shares in Kibo were up 11% to 1.95 pence on the back of the news, putting the company among the best performers on the AIM All-Share.
By Sam Unsted; [email protected]; @SamUAtAlliance
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