Kibo Mining (LON:KIBO), the Tanzania focused mineral exploration and development company, has signed a collaboration agreement with General Electric International for the development of the Mbeya coal to power project.
The agreement follows the Memorandum of Understanding announced on the 16 September and sets out in detail the terms and conditions of said collaboration into a binding agreement. The agreement provides for GE and its affiliate companies ('GE Group') to supply equipment, technology and services to the MCPP power plant, in addition to assisting and co-operating with Kibo to implement the project.
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Eurasia Mining's (LON:EUA) 80% subsidiary company, Terskaya Gornaya Kompaniya, has granted exclusivity to Lemuria Royalties Inc of Canada to conduct a due diligence on its Monchetundra PGM project until 15 January 2017.
The purpose of the due diligence is to consider the potential financing of some of the project by Lemuria using a royalty structure.
As announced on 3 November, Eurasia entered into talks with an international engineering company to manage the mining operation at the Monchetundra project, and to work for the company as the owner's representative throughout the design and build phase of the Sinosteel EPC agreement and thereafter during the operation of the mine.
The directors believe a financing structure with Lemuria would put Eurasia in a safer position and would be a natural hedge for the project risks, although at this stage there can be no guarantee that any transaction will proceed.
The EPC contract was more specifically described in the announcement of 10 October. This contract is on a turn-key basis, with financing and delivery of first production guaranteed.
While a loan of 85% of the estimated project cost is covered by a Sinosteel loan facility that will sit on Sinosteel's balance sheet until the project is up and running, a balance of US$26 million is required for completion of the project.
Due diligence work is commencing immediately and both Eurasia and TGK staff will assist Lemuria in their assessment of the project. Further updates will be provided in due course.
Managing director Christian Schaffalitzky said: "We are excited by this opportunity to further reduce the risk on the development of the Monchetundra project. The royalty structure works by providing capital upfront to advance the development and is repaid from the mine revenue streams. This is another option being considered in seeking the best way forward for Eurasia."
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The sector's biggest risers were Thor Mining (LON:THR) and Amur Minerals (LON:AMC) - up by more than 22.2% and over 12.1% respectively in late trading. The biggest fallers were Anglo Asian Mining (LON:AAZ) and Tertiary Minerals (LON:TYM) - down by more than 7% and over 6.3% respectively.
(LON:AAZ) Anglo Asian Mining PLC share price was -2p at 26.25p
(LON:AMC) Amur Minerals Corporation share price was +0.73p at 6.68p
(LON:BEM) Beowulf Mining PLC share price was 0p at 5.13p
(LON:BKY) Berkeley Energia Ltd share price was 0p at 44.5p
(LON:CEY) Centamin PLC share price was +3.75p at 135.95p
(LON:CHL) Churchill Mining PLC share price was +0.5p at 37.75p
(LON:CZA) Coal of Africa Ltd share price was +0.01p at 3.38p
(LON:EUA) Eurasia Mining PLC share price was 0p at 0.68p
(LON:FDI) Firestone Diamonds PLC share price was 0p at 56.5p
(LON:FRES) Fresnillo PLC share price was +38p at 1327p
(LON:GEMD) Gem Diamonds Ltd share price was -1.75p at 111.25p
(LON:HOC) Hochschild Mining PLC share price was +8.6p at 228.9p
(LON:KIBO) Kibo Mining share price was +0.25p at 7.13p
(LON:KMR) Kenmare Resources PLC share price was -2.25p at 245p
(LON:THR) Thor Mining PLC share price was +0.01p at 0.03p
(LON:VED) Vedanta Resources PLC share price was -2.25p at 802.75p