Shares in Kibo Mining rocket on MOU with EWP

18th Jul 2013 13:12

Shares in Kibo Mining soared following news it has struck a memorandum of understanding (MoU) with Korean state-owned East-West Power (EWP) for the Rukwa coal project in Southern Tanzania.The two companies intend to jointly develop a 300-350 megawatt mouth-of-mine thermal coal plant at the Rukwa coal deposit in southern Tanzania. Kibo had announced in April that EWP had been picked as its preferred strategic partner on the project. It said the MoU was a major step towards finalising the deal with EWP. It is expected to be set in stone following a site visit and technical due diligence by EWP at the beginning of next month. Northland Capital Partners analyst Ryan Long said: "This is a positive development for Kibo as EWP is global power producer owned by the Korean Government that owns and operates power plants with a total generation capacity of 8,916MW."Shares in Kibo had risen 59% to 4.38p by 13.33 on Thursday.TB