Kibo Mining recrafts Mbeya project agreement with SEPCO III

SEPCO III would refund Kibo 50% of the development costs incurred, starting with US$1.8mln by 30 August. In return, it would acquire the right to be the sole bidder for the project.

The pair would move to agree the remainder of the costs, said Kibo, adding a payment date must be agreed by 22 September.

SEPCO III would not have an equity stake in the Mbeya project going forward.

"We are extremely pleased that we have been successful in negotiating a new agreement with SEPCO III on favorable terms that ensures the company continues to hold a 100% interest in the MCPP and still leaves Kibo with full and absolute control over the further development of the project," said Kibo's chief executive, Louis Coetzee, said.

"The company will benefit from a near term cash injection which the company can use at its sole discretion and which will be of great assistance with the further development of the MCPP," Coetzee said in a statement.

"It also provides for a further cash payment to be made to Kibo, subsequent to the initial tranche of $1.8m as partial reimbursement of the shareholder funds spent to date on the project."