17:00 Wed 25 Sep 2019
Kibo Energy PLC - Reorganization of the Mabesekwa Project
(Registration Number: 451931)
(External registration number: 2011/007371/10)
Share code on the JSE Limited: KBO
Share code on the AIM: KIBO
ISIN: IE00B97C0C31
("Kibo" or "the Company")
Dated: 25 September 2019
Reorganization of the Mabesekwa Coal Independent Power Project Arrangements ("MCIPP")
Kibo and Shumba hold 85% and 15% interests respectively in
a) a 761 Mt coal Mineral Resource ("MCIPP Resource" - see Table 1) held entirely within KEB, with KEB having right to a
b) studies investigating the construction of a 300MW integrated power project at Mabesekwa; and
c) certain water and land use permits and environmental certification in place (see announcement dated 30 November 2017).
Under the reorganization the MCIPP Retained Assets will be consolidated back into KEB and Kibo's interest in KEB will be reduced to 35% to 40% to maintain Kibo's look-through interest in the MCIPP Resource and make sundry adjustments to recognise Kibo's project expenditure. An additional Joint Venture to be incorporated between Kibo and Shumba ("KP2") will enable continuation of the advancement and operation of the existing MCIPP energy projects in
As part of this reorganization the relationship between Kibo and Shumba will be expanded to include jointly managing and overseeing the development of a bespoke 300MW power station (the 'KP1 Power Plant') through the incorporation of a new company to be held 35%-40% by Kibo and the balance by Shumba. Shumba would provide the full development funding requirement for associated feasibility and technical studies. The KP1 Power Plant is in addition to the MCIPP and envisaged to provide power to a Petrochemical plant ('PCP') which will provide first
· Coal Sale Agreements with KEB to establish the MCIPP Resource as a secure and exclusive feedstock supply of coal for:
o The PCP for 100% of its feedstock requirements (on the back of a binding Coal Supply Agreement already put in place by Shumba);
o The KP1 Power Plant for 100% of its fuel needs; and
o
· Power Purchase Agreement between the PCP and the KP1 Power Plant for exclusive supply of the necessary 300MW of electricity to the PCP.
· Power Purchase agreements between MCIPP power plant and future commercial off takers.
A variety of shareholders' and joint development agreements will govern the management of the various joint ventures, including minority interest protections, with details of Kibo's final interests in the various entities and the MCIPP Resource to be advised upon completion of the reorganization.
The Agreement is conditional on a variety of commercial and technical Conditions Precedent such as the signing of a definitive agreement within ten business days, execution of the above commercial offtake agreements, and a longstop date of
Petrochemical Plant
For further background and to put the reorganization into context, Shumba recently acquired 80% of
Lock Up Provisions
Under the Agreement, and for a period of 12 months, Shumba and related parties may not sell or otherwise dispose of more than 5% of the total shares that it holds in Kibo at the date the Agreement is signed in any subsequent calendar month.
Recent emphasis has been on our major other projects, including the MCPP in
**ENDS**
For further information please visit www.kibo.energy or contact:
|
info@kibo.energy |
|
Chief Executive Officer |
|
+27 (0) 83 4408365 |
|
Corporate and Designated Adviser on JSE |
|
+44 (0) 20 7374 2212 |
|
Joint Broker |
|
+61 8 9480 2500 |
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NOMAD on AIM |
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+44 (0) 20 7236 1177 |
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Investor and Media Relations Adviser |
Notes
Kibo is simultaneously developing three similar coal-fuelled power projects: the Mbeya Coal to
Additionally, the Company has a 60% interest in
Mabesekwa Coal Resource Statement (SAMREC-Compliant) from Competent Persons' Report prepared by
Total Mabesekwa Resource - Table 1
AREA |
AREA (m2) |
SEAM |
RESOURCE CLASS |
GROSS IN SITU TONNES |
GEOLOGICAL LOSS % |
MINEABLE IN SITU TONNES |
SEAM THICKNESS (m) |
DEPTH BELOW SURFACE (m) |
PL428 |
26 728 764 |
SG |
MEASURED |
0 |
5% |
0 |
|
|
PL428 |
26 728 764 |
SG |
INDICATED |
0 |
10% |
0 |
|
|
PL428 |
26 728 764 |
SG |
INFERRED |
3 374 600 |
15% |
2 868 410 |
2.47 |
46.6 |
|
|
SG |
TOTAL |
3 374 600 |
|
2 868 410 |
2.47 |
46.6 |
PL428 |
26 728 764 |
SF |
MEASURED |
3 580 000 |
5% |
3 401 000 |
3.77 |
46.9 |
PL428 |
26 728 764 |
SF |
INDICATED |
16 894 500 |
10% |
15 205 050 |
3.04 |
43.6 |
PL428 |
26 728 764 |
SF |
INFERRED |
2 579 400 |
15% |
2 192 490 |
2.86 |
43.1 |
|
|
SF |
TOTAL |
23 053 900 |
|
20 798 540 |
3.13 |
44.1 |
PL428 |
26 728 764 |
SE |
MEASURED |
1 701 500 |
5% |
1 616 425 |
2.91 |
39.4 |
PL428 |
26 728 764 |
SE |
INDICATED |
23 255 200 |
10% |
20 929 680 |
3.21 |
40.5 |
PL428 |
26 728 764 |
SE |
INFERRED |
37 555 800 |
15% |
31 922 430 |
3.92 |
35.1 |
|
|
SE |
TOTAL |
62 512 500 |
|
54 468 535 |
3.63 |
37.2 |
PL428 |
26 728 764 |
SD |
MEASURED |
8 283 900 |
5% |
7 869 705 |
3.81 |
50.8 |
PL428 |
26 728 764 |
SD |
INDICATED |
47 821 700 |
10% |
43 039 530 |
3.40 |
44.0 |
PL428 |
26 728 764 |
SD |
INFERRED |
12 132 300 |
15% |
10 312 455 |
2.79 |
35.4 |
|
|
SD |
TOTAL |
68 237 900 |
|
61 221 690 |
3.34 |
43.3 |
PL428 |
26 728 764 |
SC |
MEASURED |
22 123 800 |
5% |
21 017 610 |
4.49 |
44.1 |
PL428 |
26 728 764 |
SC |
INDICATED |
104 931 800 |
10% |
94 438 620 |
4.58 |
41.2 |
PL428 |
26 728 764 |
SC |
INFERRED |
32 729 100 |
15% |
27 819 735 |
4.16 |
36.3 |
|
|
SC |
TOTAL |
159 784 700 |
|
143 275 965 |
4.48 |
40.6 |
PL428 |
26 728 764 |
SB |
MEASURED |
41 178 500 |
5% |
39 119 575 |
6.32 |
46.4 |
PL428 |
26 728 764 |
SB |
INDICATED |
209 968 000 |
10% |
188 971 200 |
6.64 |
46.0 |
PL428 |
26 728 764 |
SB |
INFERRED |
61 192 400 |
15% |
52 013 540 |
6.55 |
44.4 |
|
|
SB |
TOTAL |
312 338 900 |
|
280 104 315 |
6.58 |
45.7 |
PL428 |
26 728 764 |
SA |
MEASURED |
37 900 600 |
5% |
36 005 570 |
7.54 |
54.1 |
PL428 |
26 728 764 |
SA |
INDICATED |
146 796 100 |
10% |
132 116 490 |
6.48 |
54.8 |
PL428 |
26 728 764 |
SA |
INFERRED |
35 578 200 |
15% |
30 241 470 |
6.16 |
56.7 |
|
|
SA |
TOTAL |
220 274 896 |
|
198 363 526 |
6.61 |
55.0 |
|
TOTAL COAL ALL SEAMS |
849 577 400 |
10% |
761 100 985 |
|
|
Kibo Mabesekwa Coal Resource Statement (SAMREC Compliant)
Approx.
Kibo Mabesekwa Resource 100% basis - Table 2
|
AREA |
AREA (m2) |
RESOURCE CLASS |
SEAM |
GROSS IN SITU TONNES |
GEOLOGICAL LOSS % |
MINEBALE IN SITU TONNES |
SEAM THICKNESS (m) |
DEPTH BELOW SURFACE (m) |
||||||
|
Mt300 |
11,556,050 |
MEASURED |
SG |
0 |
5 |
0 |
|
|
||||||
|
Mt300 |
11,556,050 |
INDICATED |
SG |
0 |
10 |
0 |
|
|
||||||
|
Mt300 |
11,556,050 |
INFERRED |
SG |
286,700 |
15 |
243,695 |
4.25 |
38.7 |
||||||
|
|
|
TOTAL |
SG |
286,700 |
|
243,695 |
4.25 |
38.7 |
||||||
|
Mt300 |
11,556,050 |
MEASURED |
SF |
71,500 |
5 |
67,925 |
1.85 |
45.3 |
||||||
|
Mt300 |
11,556,050 |
INDICATED |
SF |
3,936,000 |
10 |
3,542,400 |
3.25 |
36 |
||||||
|
Mt300 |
11,556,050 |
INFERRED |
SF |
106,000 |
15 |
90,100 |
2.59 |
40.5 |
||||||
|
|
|
TOTAL |
SF |
4,113,500 |
|
3,700,425 |
3.21 |
36.3 |
||||||
|
Mt300 |
11,556,050 |
MEASURED |
SE |
0 |
5 |
0 |
|
|
||||||
|
Mt300 |
11,556,050 |
INDICATED |
SE |
4,547,700 |
10 |
4,092,930 |
2.22 |
40.7 |
||||||
|
Mt300 |
11,556,050 |
INFERRED |
SE |
27,000,600 |
15 |
22,950,510 |
4.29 |
33.4 |
||||||
|
|
|
TOTAL |
SE |
31,548,300 |
|
27,043,440 |
3.99 |
34.5 |
||||||
|
Mt300 |
11,556,050 |
MEASURED |
SD |
811,300 |
5 |
770,735 |
4.3 |
63.4 |
||||||
|
Mt300 |
11,556,050 |
INDICATED |
SD |
18,401,100 |
10 |
16,560,990 |
3.32 |
39.9 |
||||||
|
Mt300 |
11,556,050 |
INFERRED |
SD |
5,086,600 |
15 |
4,323,610 |
2.39 |
36.6 |
||||||
|
|
|
TOTAL |
SD |
24,299,000 |
|
21,655,335 |
3.16 |
40 |
||||||
|
Mt300 |
11,556,050 |
MEASURED |
SC |
13,196,900 |
5 |
12,537,055 |
5.82 |
40.5 |
||||||
|
Mt300 |
11,556,050 |
INDICATED |
SC |
43,405,100 |
10 |
39,064,590 |
4.91 |
38 |
||||||
|
Mt300 |
11,556,050 |
INFERRED |
SC |
8,550,500 |
15 |
7,267,925 |
4.68 |
33.9 |
||||||
|
|
|
TOTAL |
SC |
65,152,500 |
|
58,869,570 |
5.06 |
38 |
||||||
|
Mt300 |
11,556,050 |
MEASURED |
SB |
26,782,000 |
5 |
25,442,900 |
6.18 |
44.5 |
||||||
|
Mt300 |
11,556,050 |
INDICATED |
SB |
75,963,000 |
10 |
68,366,700 |
5.86 |
41.4 |
||||||
|
Mt300 |
11,556,050 |
INFERRED |
SB |
15,522,600 |
15 |
13,194,210 |
5.52 |
47.7 |
||||||
|
|
|
TOTAL |
SB |
118,267,600 |
|
107,003,810 |
5.89 |
42.9 |
||||||
|
Mt300 |
11,556,050 |
MEASURED |
SA |
18,315,900 |
5 |
17,400,105 |
7.58 |
49.3 |
||||||
|
Mt300 |
11,556,050 |
INDICATED |
SA |
61,491,700 |
10 |
55,342,530 |
6.5 |
47.7 |
||||||
|
Mt300 |
11,556,050 |
INFERRED |
SA |
13,733,000 |
15 |
11,673,050 |
5.18 |
51.2 |
||||||
|
|
|
TOTAL |
SA |
93,540,600 |
|
84,415,685 |
6.52 |
48.5 |
||||||
TOTAL COAL ALL SEAMS |
337,208,200 |
|
302,931,960 |
|
|
|
|||||||||
Kibo Mabesekwa Coal Resource Statement (SAMREC Compliant) Kibo's 85% Attributable Interest in Coal Resource in Table 2
Kibo Mabesekwa Resource 85% Basis - Table 3
AREA |
AREA (m2) |
RESOURCE CLASS |
SEAM |
GROSS IN SITU TONNES |
GEOLOGICAL LOSS % |
MINEBALE IN SITU TONNES |
85% ATTRIBUT-ABLE |
SEAM THICKNESS (m) |
DEPTH BELOW SURFACE (m) |
Mt300 |
11,556,050 |
MEASURED |
SG |
0 |
5 |
0 |
0 |
|
|
Mt300 |
11,556,050 |
INDICATED |
SG |
0 |
10 |
0 |
0 |
|
|
Mt300 |
11,556,050 |
INFERRED |
SG |
286,700 |
15 |
243,695 |
207,141 |
4.25 |
38.7 |
|
|
TOTAL |
SG |
286,700 |
|
243,695 |
207,141 |
4.25 |
38.7 |
Mt300 |
11,556,050 |
MEASURED |
SF |
71,500 |
5 |
67,925 |
57,736 |
1.85 |
45.3 |
Mt300 |
11,556,050 |
INDICATED |
SF |
3,936,000 |
10 |
3,542,400 |
3,011,040 |
3.25 |
36 |
Mt300 |
11,556,050 |
INFERRED |
SF |
106,000 |
15 |
90,100 |
76,585 |
2.59 |
40.5 |
|
|
TOTAL |
SF |
4,113,500 |
|
3,700,425 |
3,145,361 |
3.21 |
36.3 |
Mt300 |
11,556,050 |
MEASURED |
SE |
0 |
5 |
0 |
0 |
|
|
Mt300 |
11,556,050 |
INDICATED |
SE |
4,547,700 |
10 |
4,092,930 |
3,478,991 |
2.22 |
40.7 |
Mt300 |
11,556,050 |
INFERRED |
SE |
27,000,600 |
15 |
22,950,510 |
19,507,934 |
4.29 |
33.4 |
|
|
TOTAL |
SE |
31,548,300 |
|
27,043,440 |
22,986,924 |
3.99 |
34.5 |
Mt300 |
11,556,050 |
MEASURED |
SD |
811,300 |
5 |
770,735 |
655,125 |
4.3 |
63.4 |
Mt300 |
11,556,050 |
INDICATED |
SD |
18,401,100 |
10 |
16,560,990 |
14,076,842 |
3.32 |
39.9 |
Mt300 |
11,556,050 |
INFERRED |
SD |
5,086,600 |
15 |
4,323,610 |
3,675,069 |
2.39 |
36.6 |
|
|
TOTAL |
SD |
24,299,000 |
|
21,655,335 |
18,407,035 |
3.16 |
40 |
Mt300 |
11,556,050 |
MEASURED |
SC |
13,196,900 |
5 |
12,537,055 |
10,656,497 |
5.82 |
40.5 |
Mt300 |
11,556,050 |
INDICATED |
SC |
43,405,100 |
10 |
39,064,590 |
33,204,902 |
4.91 |
38 |
Mt300 |
11,556,050 |
INFERRED |
SC |
8,550,500 |
15 |
7,267,925 |
6,177,736 |
4.68 |
33.9 |
|
|
TOTAL |
SC |
65,152,500 |
|
58,869,570 |
50,039,135 |
5.06 |
38 |
Mt300 |
11,556,050 |
MEASURED |
SB |
26,782,000 |
5 |
25,442,900 |
21,626,465 |
6.18 |
44.5 |
Mt300 |
11,556,050 |
INDICATED |
SB |
75,963,000 |
10 |
68,366,700 |
58,111,695 |
5.86 |
41.4 |
Mt300 |
11,556,050 |
INFERRED |
SB |
15,522,600 |
15 |
13,194,210 |
11,215,079 |
5.52 |
47.7 |
|
|
TOTAL |
SB |
118,267,600 |
|
107,003,810 |
90,953,239 |
5.89 |
42.9 |
Mt300 |
11,556,050 |
MEASURED |
SA |
18,315,900 |
5 |
17,400,105 |
14,790,089 |
7.58 |
49.3 |
Mt300 |
11,556,050 |
INDICATED |
SA |
61,491,700 |
10 |
55,342,530 |
47,041,151 |
6.5 |
47.7 |
Mt300 |
11,556,050 |
INFERRED |
SA |
13,733,000 |
15 |
11,673,050 |
9,922,093 |
5.18 |
51.2 |
|
|
TOTAL |
SA |
93,540,600 |
|
84,415,685 |
71,753,332 |
6.52 |
48.5 |
TOTAL COAL ALL SEAMS |
337,208,200 |
|
302,931,960 |
257,492,166
|
|
|
Review by Qualified Persons
The information in this announcement that relates to the Mabesekwa Coal Resource Statement and the Kibo Mabesekwa Kibo Coal Resource Statement is taken from CPR reports by Mr NJ Denner who is employed by Gemecs (Pty) Ltd as a full-time consulting geologist. Mr NJ Denner, Pr.Sci.Nat,
Kibo's Technical Director,
Glossary of Technical Terms
"Indicated Resource" |
That part of a coal resource for which tonnage, densities, shape, physical characteristics, grade and coal quality can be estimated with a moderate level of confidence. Based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill-holes. The data-point locations are appropriate to confirm physical continuity, while they are too widely or inappropriately spaced to confirm quality continuity. However, such locations are spaced closely enough for quality continuity to be assumed. |
"Inferred Resource" |
That part of a coal resource for which tonnage, grade and coal quality can be estimated with a low level of confidence. It is inferred from geological evidence and assumed but not verified physical continuity with or without coal quality continuity. Based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill-holes which is limited or of uncertain quality or reliability. |
"insitu" |
In its original place. Most often used to refer to the location of Mineral Resources |
"insitu tonnage" |
Measure of mass of coal or other mineral in the ground |
"m" |
A metre - a measure of length or thickness |
"Measured Resource" |
A Measured Mineral Resource is that part of a Mineral Resource for which quantity, grade or quality, densities, shape, and physical characteristics are estimated with confidence sufficient to allow the application of Modifying Factors to support detailed mine planning and final evaluation of the economic viability of the deposit |
"Mineral Resource" or "Coal Resource" (where the mineral is coal) |
A "Mineral Resource" is a concentration or occurrence of diamonds, natural solid inorganic material, or natural solid fossilised organic material including base and precious metals, coal, and industrial minerals in or on the Earth's crust in such form and quantity and of such a grade or quality that it has reasonable prospects for economic extraction. The location, quantity, grade, geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge. |
"Mt" |
Abbrev. for megaton (measure of weight). Equals 1 million tonnes |
"SAMREC" |
South African Code for Reporting Exploration Results, Mineral Resources and Ore Reserves |
"t" |
A metric tonne - a measure of weight |
"tonnage" |
Quantities where the tonne is an appropriate unit of measure. Typically used to measure or estimate quantities of in situ material or quantities of material mined, transported, processed or sold. |
25 September 2019
Corporate and Designated Adviser
River Group
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