(Alliance News) - Mast Energy Developments PLC said on Monday it had signed a "replacement first definitive and binding joint venture agreement" with Proventure Holdings (UK) Ltd.
Back in July, Mast Energy finalised a joint venture agreement with an institutional investor-led consortium led by Seira Capital Ltd. But the principal of Seira Capital was involved in a tragic road accident early in August, prompting a revision of the long-stop date of the agreement.
Mast Energy said in August it had received the full co-operation of the investor consortium and had already agreed on how the revised completion long-stop date can be met.
In terms of this agreement, Mast Energy said on Monday Proventure is required to make an initial interim payment of GBP2.0 million to the joint venture special purpose vehicle to be received no later than November 10.
The London-based developer of reserve power generations plants expects the completion long-stop date for the joint venture agreement, as well as the payment of the balance of the investment amounting to GBP3.9 million, by no later than November 30.
Mast Energy is a subsidiary of Kibo Energy PLC, a Galway, Ireland-based company with energy projects in Africa and the UK.
"We are delighted to have concluded the agreement with the replacement lead-investor, and excited to partner with a well-established and reputable institutional investor such as Proventure," Mast Energy Chief Executive Pieter Krugel said.
The parties, Krugel said, are fully committed to finalise the statutory arrangements required to ensure the successful completion and transfer of funds as quickly as possible.
Mast Energy said the joint venture agreement in July committed parties to promptly finalise terms on a second joint venture that will increase the envisaged total investment value to GBP31 million.
Shares in Mast Energy rose by 2.7% to 1.12 pence each on Monday in London. But shares in Kibo tumbled 50% to one rand cents in Johannesburg, and they lost 6.7% to 0.051 pence in London.
By Artwell Dlamini, Alliance News reporter
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