(Alliance News) - Kibo Energy PLC said Tuesday it is making good progress towards de-risking and commission the power generation plant at Bordersley, in the UK.
The London and Johannesburg-listed firm's wholly owned subsidiary Bordersley Power Ltd is developing the 5 megawatt gas-fuelled power plant in cooperation with Kibo's 60%-owned subsidiary Mast Energy Developments Ltd. Mast Energy is the manager and operator of the plant.
Kibo said the two companies are making "good progress" is de-risking the plant and remain on track for commercial commissioning at the end of the first quarter in 2020.
Kibo noted further milestones were achieved at the plant - including site work scope, advanced engineering, procurement & construction agreements, and further financing for construction and commissioning - resulting in further payment of 10.0 million shares.
In June, Kibo had bought all remaining interests in Bordersley from St Anderton on Vaal Ltd in a GBP2.4 million all-share deal.
Prior to the purchase, St Anderton held a 40% indirect interest in Bordersley, with Kibo holding the remainder. Kibo will secure the remaining 40% interest through the issue of 46.1 million of its London-listed shares at a price of 5.25 pence each as milestones are achieved.
In October, Kibo signed a joint development agreement with AB Group for the project.
Shares in were down 5.8% in London on Tuesday at 0.40 pence each. In Johannesburg, the shares were flat at ZAR0.10.
Kibo Chief Executive Officer Louis Coetzee commented: "The MED/AB partnership is working well and making excellent headway towards hitting the end of quarter one 2020 target to commission our 100% owned 5 megawatt gas-fuelled power generation plant at Bordersley. This progress is reflective of similar advances being made across our portfolio; we are now well positioned to bring several projects to fruition during 2020."
By Paul McGowan; paulmcgowan@alliancenews.com
Copyright 2019 Alliance News Limited. All Rights Reserved.
Kibo Energy (KIBO)