Completion of Botswanan Power Project Acquisition and Appointment of Director
03 April 2018
Kibo Mining plc (AIM: KIBO; AltX: KBO), the multi-asset Africa-focused energy and resource company, is pleased to announce that, further to the RNS dated 30 November 2017, it has completed the acquisition of an 85% interest in the Mabesekwa Coal Independent Power Project (‘MCIPP’) (‘the Acquisition’).
This project located in Botswana complements Kibo’s Mbeya Coal to Power Project (‘MCPP’) in Tanzania and is in line with the Company’s broader strategy to position itself as a strategic regional energy company focused on tackling the acute power shortage, particularly in Southern Africa. As part of the terms of the Acquisition, Mr. Mashale Phumaphi has joined the Company as a Non-Executive Director.
- All share deal with Sechaba Natural Resources Limited (‘Sechaba’) completed, which sees Kibo acquire an 85% interest in a strategic integrated power project in Botswana;
- Highly synergistic with flagship MCPP in Tanzania, providing considerable benefits: economies of scale in equipment, execution, project finance and strategic partnerships;
- Robust market dynamics given large energy deficit in Botswana;
- Advanced project – Scoping Study highlights 30-year Life of Mine with a maximum capacity of 600MW (4x150MW) based on a coal delivery rate of 3.2Mtpa;
- Strong backing by institutional investors through Shumba Energy Limited’s (“Shumba”) investor base;
- Significant additional benefits to the agreement include Kibo’s first right of refusal to participate in any energy projects that Shumba may pursue over the next six-years;
- Consistent with Kibo’s business model and provides further endorsement of the Company’s ability to develop nationally important energy projects on a regional scale;
- Appointment of Mr. Mashale Phumaphi as Non-Executive Director.