Kibo Mining PLC (LON:KIBO) said that the due date for the Mbeya coal-to-power project (MCPP) to be “financial close ready” has been adjusted.
It is now expected that the MCPP, in Tanzania, will be financial close ready, i.e. ready to commence with the process of financial close, by the end of the second quarter of 2016. This is slightly later than previously announced but the delay has no impact on the overall timeline, as reflected in the due date for the next critical milestone, which remains the same as before.
Both the mining and power definitive feasibility studies (the MDFS and PDFS) are still on schedule, with the PDFS still expected at the end of this month and the MDFS shortly thereafter, subject to the timely receipt of the various Government permits/licences relevant to the MDFS.
The delay in the project being ready for the process of financial close was partly caused by the collapse of broker Hume Capital at a time when it was sitting on cash raised on behalf of Kibo through a share placing.
In addition there were the usual delays and hurdles that seem to occur in any major project that requires regulatory approvals and permitting processes.
The integrated bankable feasibility study (IBFS) for the MCPP, which is the key deliverable to reach financial close ready status, is now also expected during the latter part of the second quarter.
The process description and timeline is available on the company's web site.