JOHANNESBURG (miningweekly.com) – Tanzania-focused exploration and development company Kibo Mining on Wednesday said it had concluded its selection of global power producer Korea East-West Power (EWP) as the preferred strategic participant for its Rukwa coal-to-power project.
Kibo added that negotiations were currently under way to finalise a formal joint venture (JV) agreement between the parties.
The selection of EWP was pursuant to the decision by the Tanzanian government to include Rukwa as a key component of the Tanzanian National Energy Strategy (NES).
EWP owns and operates power plants in Korea with a total generation capacity of 8 816 MW.
Meanwhile, Kibo also received commitments to a share placing to raise £780 000, before expenses, through the issue of 19.5-million new ordinary shares at 4p apiece.
The net proceeds of the placing would be used to undertake the scoping study at Rukwa, as the company looked to complete the JV agreement between the parties.
Application would be made for the placing of the shares to be admitted to trading on the Aim, while dealings were expected to commence on May 1.
“We are honoured at the opportunity to collaborate with our colleagues at EWP in developing the regionally important Rukwa coal-to-power project as one of the key components of the Tanzanian government’s NES,” Kibo CEO Louis Coetzee said.