(Alliance News) - Africa-focused energy company Kibo Energy PLC said Wednesday its subsidiary MAST Energy Developments Ltd has signed a joint development agreement with AB Group, which helps develop power plants for UK projects.
Under the agreement, MAST will operate a portfolio and pipeline of projects in the UK, while AB provides a solution including the supply of co-generation plants under a rent or alternative funding option.
MAST will first present a list of three prospective projects which it considers suitable as candidates for the solutions offered by AB Group.
For each project, AB will directly negotiate with MAST over all commercial, technical and legal terms, which can potentially lead to a signature of the contract for the sale of equipment and the financial structure.
The agreement also contains mutual exclusivity clauses, where for the first 12-month term and two years following the agreement's expiration MAST will appoint AB as its exclusive contractor for the supply of plants for MAST's UK projects.
"Executing a comprehensive JDA with a global player such as AB, is a key deliverable in terms of the overall development plan for MAST. More specifically, it is a critical step towards securing the delivery of a fully operational site at Bordesley by end of the first quarter of 2020 and the associated first revenue generation for the company," said Chief Executive Officer Louis Coetzee.
"There is a roll out plan for MAST and we remain both supportive and excited on the delivery of further plants, widening our international partnership network and delivery of energy solutions in the UK and Africa," Coetzee added.
Shares in Kibo Energy were up 7.1% at 0.45 pence in London, while its Johannesburg shares were 8.3% higher at ZAR0.13 on Wednesday.
By Dayo Laniyan; dayolaniyan@alliancenews.com
Copyright 2019 Alliance News Limited. All Rights Reserved.
Kibo Energy (KIBO)