Kibo Mining’s (LON:KIBO) boss is confident work will get underway on its flagship Mbeya coal to power project in Tanzania in the New Year.
Mbeya now has MinXcon to complete mining feasibility work, Tractebel to complete the power feasibility studies, SEPCOIII as the preferred EPC contractor and Standard Bank as the financial advisor, said Louis Coetzee, chief executive.
“With these capabilities in place and progress on track we look forward to updating shareholders on Financial Close and the commencement of construction in the New Year,” he said.
Completion of definitive feasibility studies at Mbeya and its other main projects would also open funding sources not previously available, he said.
In total, the value of its flagship projects has been independently assessed as more than US$500mln, Coetzee said in a letter to shareholders today.
“With several of these studies now in their definitive stage and very near completion, this value is expected to further improve significantly and simultaneously open funding options to Kibo that has to date not been accessible to the company. “
He added that the appointment of Tractebel at the Mbeya coal to power project in Tanzania was a major strategic breakthrough, especially with the favourable commercial terms.
“Relieving pressure on Kibo’s short term cash flow and funding requirements will potentially enable us to maintain our 100% ownership of the project through the Bankable Feasibility Study.“
Shares rose 10% to 4p.