Kibo Mining and SEPCO III have announced a joint development agreement for SEPCO III’s Rukwa Coal to Power Project in Tanzania. The agreement includes:
- Kibo being able to further release value in the SPV by part removal of its interest. They will produce funds, which can, if necessary, be used to support any ongoing RCPP cost contribution, allowing the project to be operationally self-financing for Kibo;
- SEPCO III to add up to US$3 million towards completing remaining Definitive Feasibility Study work by October 2015;
- Financial Close for RCPP anticipated by December 2015, with construction mobilisation starting during quarter 1 of 2016;
- In quarter 2 of 2016, construction work is estimated to begin with completion and first power delivered into the grid predicted by quarter 1 2019;
- Upon successfully finishing the Definitive Feasibility Study, the RCPP will be transferred into a Special Purpose Vehicle in which Kibo Mining will hold a minimum equity position of 85%, preserving maximum shareholder value in RCPP as it progresses.
Adapted from press release by Harleigh Hobbs
Read the article online at: https://www.worldcoal.com/coal/20042015/announcement-development-agreement-coal-power-project-2190/