Kibo Energy plc (AIM: KIBO; AltX: KBO), the multi-asset Africa-focused energy company, is pleased to announce an update on its 60% owned subsidiary, MAST Energy Developments Limited (‘MED’), a private UK registered company targeting the development and operation of flexible power plants to service the Reserve Power generation market.
MED has now signed a binding conditional agreement for the exclusive right to undertake due diligence and negotiate the potential acquisition of five peaking power sites totalling 25.85MW.
Under the agreement, MED has secured, at no cost, the exclusive right to acquire five peaking power sites totalling 25.85MW from a prospective developer (“Counterparty”), subject to completion of due diligence to MED/Kibo’s satisfaction and subsequent agreement of detailed commercial terms and conditions, including the acquisition price and transaction structure. The sites range in scale from c.2.5MW to c.7.5MW and are all 11 kilo-volt ampere (‘KVA’). MED has until 8 April 2019 to complete its due diligence, with a long stop date for the conclusion of share sale agreements of 31 May 2019.
Additionally, as per the announcement dated 30 January, MED has now entered the final stages of the negotiation of the Joint Development Agreement on the first shovel ready site, namely a 5MW, 11 KVA site. Once this negotiation has completed, it shall look to complete negotiations and sign the Joint Development Agreement on the second site
Louis Coetzee, CEO of Kibo Energy said: “MED is making excellent progress towards commencing operations later in the year and realising first revenues. This agreement to potentially acquire a further five sites demonstrates MED’s commitment to becoming a fully operational and competitive power supplier in the UK Reserve Power generation market. It is still in the early stages of achieving this, but we could not have hoped for a more successful start than what we have seen over the past three months.
The Company is looking forward to updating the market with further progress on MED as well as the Company’s continued progress with regard to its Botswana, Mozambique and Tanzanian projects. Regarding the latter, the Company is still awaiting a formal response to its request for clarification from the Tanzania Electricity Supply Company (“TANESCO”) as announced in RNS dated 14 February 2019″
