(Alliance News) -Â Kibo Energy PLC on Friday said it is "delighted" with the progress being made as it restructures operations in Botswana.
The company has signed the first in a series of agreements to implement the heads of agreement with Botswana-based energy developer Shumba to reorganise arrangements for the Mabesekwa coal power project and its associated coal asset in Botswana.
The reorganisation sees the power project's retained assets consolidated into Kibo Energy Botswana (Pty) Ltd. Additionally, Kibo and Shumba will jointly manage and oversee the development of a power station through the incorporation of a new company to be held 35% to 40% by Kibo and the rest by Shumba.
Kibo said a shareholder agreement has now been signed for the restructuring Kibo Energy Botswana, providing Kibo with a 35% interest in the operation.
Remaining agreements are on track to be complete by March 2020.
"We are delighted with the progress being made as we advance the restructuring of our interests in Botswana to significantly lower development and execution risk. Being part of several much larger projects naturally provides many benefits and advantages to the company and its shareholders," said Kibo Chief Executive Louis Coetzee.
Kibo shares were flat at ZAR0.09 in Johannesburg on Friday.
By Lucy Heming;Â lucyheming@alliancenews.com
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Kibo Energy (KIBO)