Kibo Mining PLC (LON:KIBO) has begun for the tender process the contract to construct the power plant at its Mbeya development I Tanzania.
Chairman Christian Schaffalitzky said outstanding results from the power and mining feasibility studies had enabled it to renegotiate its agreement with SEPCO III at Mbeya.
Under the new agreement, SEPCO III has the right to be the sole bidder for the contract to construct the power plant at the coal fired power station in Tanzania in exchange for it refunding 50% of the development costs incurred so far by Kibo.
KIbo has already received the first tranche of US$1.8mln of the development costs from SEPCO III, said Christian Schaffalitzky, Kibo’s chairman.
He added that the final award of the EPC contract to SEPCO III would be contingent on strict bid proposal specifications laid down by Kibo and its power plant consultants Tractabel and agreement on the balance of the development costs to be refunded.
Kibo has also just detailed plans to spin off its gold interests in to a separate company, Katoro, which will have its own AIM listing.
Results for the first half to June showed higher interim losses of £2.32mln (£914,000).
Shares eased 3% to 7.85p.