Kibo Energy PLC (“Kibo” or the “Company”), the multi-asset, energy company, is pleased to announce that its 60% owned UK subsidiary, MAST Energy Developments Limited (“MED”) (see RNS’ dated 15 August 2018 and 9 October 2018), has secured an exclusive option, for a nominal fee, to undertake due diligence and negotiate the potential acquisition of three peaking power sites totalling 31.3 MW .
Under the agreement, MED has secured the exclusive right to acquire three peaking power sites totalling 31.3 MW 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.
MED has until 31 January 2019 to complete its due diligence on the first 5.3MW, 11 KVA site and until 15 February 2019 on the other two sites, 6MW, 11KVA and 20MW, 33KVA respectively. Kibo believes that, subject to due diligence outcomes, these sites may have the potential to lead to revenue generation for Kibo during the latter part of 2019.
It is noted that despite entry into the option, no assurance can be provided that a commercial transaction will ultimately be concluded with the Counterparty, or on what terms. The Company will provide further updates as required.
Louis Coetzee, CEO of Kibo Energy said: “Successful completion of due diligence and this potential acquisition by MED would be a significant step closer towards realising Kibo’s first near-term revenue generating assets.”
Kibo Energy PLC is a multi-asset, Africa focussed, energy company positioned to address the acute power deficit, which is one of the primary impediments to economic development in Sub-Saharan Africa. To this end, it is the Company’s objective to become a leading independent power producer in the region.
Kibo is simultaneously developing three similar coal-fuelled power projects: the Mbeya Coal to Power Project (‘MCPP’) in Tanzania; the Mabesekwa Coal Independent Power Project (‘MCIPP’) in Botswana; and the Benga Independent Power Project (‘BIPP’) in Mozambique. By developing these projects in parallel, the Company intends to leverage considerable economies of scale and timing in respect of strategic partnerships, procurement, equipment, human capital, execution capability / capacity and project finance. Additionally, the Company will benefit from its robust and experienced international blue-chip partnership network across its project portfolio, which includes: SEPCO III (China), General Electric (USA); Tractebel Engineering (Belgium); Minxcon Consulting (South Africa); ABSA / Barclays Africa; and Hogan Lovells International LLP.
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