Kibo Energy PLC (‘Kibo’ or ‘the Company’), the multi-asset, Africa focused, energy company, is pleased to announce that a preliminary notice to proceed with the construction and commissioning of the 5MW gas-fuelled power generation plant at Bordersley Power Ltd (‘Bordersley’).
Has been issued by the Company’s 60% owned subsidiary, and manager and operator of Bordersley, MAST Energy Developments Limited (‘MED’).
The issuance of the preliminary notice demonstrates the significant progress being made towards de-risking the development of Bordesley. The plant is targeted for commercial commissioning end of Q1 2020 and is the first reserve power generation project being developed by MED, which is focused on building its initial portfolio of 100MW.
This event also triggers the payment of the next tranche of shares to the original MED vendors, St’ Anderton on Vaal Limited (‘St’ Anderton’), pursuant to the agreement for Kibo to consolidate full ownership of Bordersley by acquiring all of St’ Anderton’s direct and indirect interests in Bordersley (please refer to announcement dated 26 June 2019). St’ Anderton will be issued 6,000,000 ordinary shares in the share capital of Kibo at a deemed issue price of GBP0.0525 per share (‘First Tranche Shares’).
Louis Coetzee, CEO of Kibo Energy, commented, “Receipt of the preliminary notice to proceed provides a positive step in the development of the Bordersley power plant and the advancement of our UK power market exposure as we continue to advance our strategy of becoming a global energy developer with multiple power projects. The opportunity to access revenue streams in the short term through an effective utilisation of the UK Reserve Power business model was the basis for the decision to acquire a strategic position in MED, and we have been consistently impressed by the significant progress achieved by MED in a relatively short time frame.
“We believe MED to be highly complementary to our portfolio of coal-to-power projects in Africa which includes the Mabesekwa Coal Independent Power Project in Botswana and the Benga Power Plant Project in Mozambique. We see a distinct opportunity in our business model and through our network of international advisors, and we remain focused on navigating the intricate agreements needed to bring our projects into commercialisation. I look forward to updating shareholders in the upcoming weeks.”
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Application will be made for the First Tranche Shares to be admitted to trading on AIM and the JSE AltX markets. Trading in the First Tranche Shares is expected to commence on AIM and the JSE on or around 16 September 2019 (‘Admission’). Following Admission, the Company will have 805,053,798 shares in issue. The foregoing figure may be used by shareholders as the denominator for the calculations to determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA’s Disclosure Guidance and Transparency Rules.
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