Kibo Mining PLC (LON:KIBO) (AltX: KBO) saw its shares rise today on news the firm is making progress in securing project financing for its Mbeya coal-to-power project in Tanzania.
In late afternoon trading, Kibo shares were 9.5%, or 0.5p higher at 5.75p.
READ: Kibo Mining concludes final bid clarification for construction of the Mbeya Power Plant transmission line
Significant progress has also been made in putting together the Power Purchase Agreement with Tanzania's sole energy provider, Tanzania Electric Supply Company Ltd (TANESCO).
Mbeya is Kibo’s flagship asset. The plan is to develop the Mbeya coal mine as a 1.5mln tonne operation based on a defined 120.8 mln tonne resource, and the Mbeya Power Plant, a 300MW mine-mouth power station.
The MCPP is being advanced to capitalise on the acute energy deficit in Tanzania and the wider East African region and has received strong support from both the government and international corporates.
Kibo has received formal Letters of Intent from multiple international EPC/ power developers and financing conglomerates keen to provide full project level equity funding for the MCPP.
READ: Kibo effectively navigating operating environment in Tanzania, funding talks continue
As such, advanced negotiations with all potential project level investors are currently underway.
"Throughout the years we have enjoyed an excellent working relationship with the Tanzanian government, and we continue to work successfully under the new mining framework,” said Louis Coetzee, Kibo’s chief executive.
“Having so many global powerhouses expressing a keen interest to partner with us is a fantastic validation of Kibo.”
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