(Alliance News) - Kibo Energy PLC said Wednesday it will seek to raise GBP1.5 million to further develop its energy portfolio.
The Johannesburg and London-listed firm said GBP1.0 million of placing is fully underwritten by TS Capital Ltd at a price of 0.45 pence per share.
The remaining GBP500,000 will raised from the company's directors, management and "arranged parties".
Kibo's total project power generation capacity contains 1,055 megawatts, with 355 megawatt already covered under heads of terms power purchase agreements. Kibo said the remaining capacity is in advanced negotiations with potential private and utility off-takers.
The company said it will ultimately transition 100% of its energy generation capacity to sustainable and affordable renewable energy generation.
"2018 was transformational for the company, as we repositioned Kibo to become a significant energy solutions provider in Africa and beyond," said Chief Executive Louis Coetzee.
Coetzee continued: "To enable and execute this strategy, within the space of 18 months, we built a well-diversified portfolio, and concurrently developed it to bankable feasibility level, except for the Mabesekwa coal independent power project, which is at feasibility level.
"Our project portfolio therefore not only provides Kibo with the ideal platform from where it can execute its corporate strategy but is also strategic in materially mitigating its country and project risk, whilst taking full advantage of the lucrative commercial opportunities they presented in a fast-growing African energy sector."
He added: "We are therefore very pleased to have secured a fully underwritten placing that also enjoys significant participation by the Kibo directors and management. We view this as a strong vote of confidence in the company's value proposition, strategy and ability to realise this value to its full extent."
The placing has warrants attached, with one warrant per share. Each warrant is exercisable at 0.8p per share for a period of 18 months and then half a warrant exercisable at 1p per share for the next 36 months.
Kibo also said it is making "good progress" on the development of its portfolio of advanced power generation and associated mining projects in Sub-Saharan Africa and the UK.
Shares in Kibo closed 13% lower in London at 0.50 pence each. In Johannesburg the shares ended flat at ZAR0.16 each.
By Paul McGowan; paulmcgowan@alliancenews.com
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Kibo Energy (KIBO)