JOHANNESBURG (miningweekly.com) – Aim- and AltX-listed Kibo Mining on Thursday released a shareholder update in which it reflected on a milestone year in which the mineral exploration and development company underwent a complete restructuring of its board and executive management team and advanced its flagship Rukwa project, in Tanzania.

“We are pleased to provide shareholders with an update on Kibo’s progress during 2013 and planned objectives for this year, specifically focused on advancing the company's current key coal and gold projects as well as, opportunistically, considering new low-entry price project opportunities in Tanzania,” commented CEO Louis Coetzee.

The company in 2013 received Tanzanian government support for the Rukwa coal-fired power project and was included in the Tanzanian Strategic National Energy Plan, while also signing a memorandum of understanding (MoU) with Korean East-West Power (EWP).

The company also completed a comprehensive project development plan for Rukwa over the period and advanced negotiations towards finalising the EWP joint-venture (JV) agreement for the development of the project.

However, subsequent to announcing the EWP MoU, strong interest from numerous other potential development partners was received, confirming much wider international interest from potential developers than Kibo originally anticipated.

“This compelled us to reassess and redirect our strategic course for Rukwa to ensure that proper advantage could be taken of the opportunity to negotiate, and to [ensure] that we settled for the best possible commercial terms with the best possible development partner,” commented Coetzee.

As such, the company decided to postpone the finalisation of the JV agreement and planned site visits, assess partners other than EWP, initiate feasibility studies and appoint an executive management team for the project.

“In addition, we decided to fund the scoping stages of feasibility from our own resources and the subsequent stages from project funding,” Coetzee added.

To date, Kibo said it had received firm expressions of interest from five additional potential development partners, all with “exceptional” credentials and proven international track records in project development.

In addition to EWP, all five interested parties had been engaged by Kibo and were currently reviewing the project.

ADDITIONAL PORTFOLIOS

Meanwhile, in gold, the company added an 800 000 oz resource with the acquisition of Imweru and Lubando, in Tanzania, and completed Phase 1 drilling at Imweru.

In a bid to expand its gold portfolio, Kibo had further identified seven exploration drill targets in the Lake Victoria and Moroforo regions.

Further, the company relinquished several licences within its nickel portfolio and reaquired a 100% interest in the Haneti nickel and platinum group metals project, after Votorantim Metaís Participações opted out of the JV agreement with Kibo, through which it was earning interest in the Haneti project by funding exploration work.

Kibo also relinquished several uranium licences in 2013, following a decision to place the portfolio in care and maintenance pending a market improvement in relation to the metal.