Last checked at 30 Jan 2019 07:00
Kibo Energy PLC (Incorporated in Ireland)
(Registration Number: 451931)
(External registration number: 2011/007371/10)
Share code on the JSE Limited: KBO
Share code on the AIM: KIBO
ISIN: IE00B97C0C31
("Kibo" or "the Company")
Dated: 30 January 2019
Kibo Energy PLC ('Kibo' or the 'Company')
Update on MAST Energy Developments Limited
Kibo Energy plc (AIM: KIBO; AltX: KBO), the multi-asset Africa-focused energy company, is pleased to announce an update on its 60% owned subsidiary, MAST Energy Developments Limited ('MED'), a private UK registered company targeting the development and operation of flexible power plants to service the Reserve Power generation market.
Highlights
· Completed due diligence on two flexible power plants totalling 25.2Mw for acquisition by MED and now proceeding to negotiate Joint Development Agreements for them both
· Sites planned to be operational in Q4 2019 and Q1 2020 respectively
· Evaluating Client Engineer and Engineering, Procurement and Construction ('EPC') service providers for both sites
· Appraising conditional offers for debt financing from two financial institutions
· Extended exclusive rights on a third 6Mw site until 31 March 2019
· Progressing due diligence on a further non-exclusive 84Mw portfolio of sites
Louis Coetzee, CEO of Kibo Energy says, "MED is moving quickly, building a portfolio of flexible power plants, which will provide early revenue. I am impressed with the MED team's focus as they look to provide a valuable source of power, which blends with the intermittent supply currently being delivered by renewables into the UK energy mix."
Further Details
Further to the RNS dated 10th December 2018, due diligence on two sites totalling 25.2Mw for conditional agreement for acquisition by MED is complete and preliminary evaluation indicates that both have met the agreed parameters. Certain conditions precedent have formed part of the due diligence acceptance; these are time-related and are expected to be completed by the seller during the next phase. This next phase is the negotiation of the Joint Development Agreement for the first two sites, namely a 5Mw, 11 kilo-volt-ampere ('KVA') site and the 20Mw, 33KVA site.
In the event that MED proceed with and complete transactions on the first two sites, they are planned to be operational in the final quarter 2019 and first quarter 2020 respectively. Accordingly, Kibo and MED are in process of evaluating Client Engineer and EPC service providers for both sites and conditional offers for debt financing have been received from two financial institutions, which are undergoing evaluation.
Additionally, on request by the seller, exclusive rights on a third 6Mw 11KVA site have been extended until 31 March 2019 to finalize an outstanding planning parameter. Due diligence on a further non-exclusive 84Mw portfolio of sites is progressing; the Company will update shareholders in due course.
**ENDS**
For further information please visit www.kibo.energy or contact:
Louis Coetzee | info@kibo.energy | Kibo Energy PLC | Chief Executive Officer |
Andreas Lianos | +27 (0) 83 4408365 | River Group | Corporate and Designated Adviser on JSE |
Ben Tadd / Tom Curran | +44 (0) 20 3700 0093 | SVS Securities Limited | Joint Broker |
Jason Robertson | +44 (0) 20 7374 2212 | First Equity Limited | Joint Broker |
Andrew Thomson | +61 8 9480 2500 | RFC Ambrian Limited | NOMAD on AIM |
Isabel de Salis / Gaby Jenner | +44 (0) 20 7236 1177 | St Brides Partners Ltd | Investor and Media Relations Adviser |
Notes
Kibo Energy PLC is a multi-asset, Africa focussed, energy company positioned to address the acute power deficit, which is one of the primary impediments to economic development in Sub-Saharan Africa. To this end, it is the Company's objective to become a leading independent power producer in the region.
Kibo is simultaneously developing three similar coal-fuelled power projects: the Mbeya Coal to Power Project ('MCPP') in Tanzania; the Mabesekwa Coal Independent Power Project ('MCIPP') in Botswana; and the Benga Independent Power Project ('BIPP') in Mozambique. By developing these projects in parallel, the Company intends to leverage considerable economies of scale and timing in respect of strategic partnerships, procurement, equipment, human capital, execution capability / capacity and project finance.
Additionally, the Company has a 60% interest in MAST Energy Developments Limited ('MED'), a private UK registered company targeting the development and operation of flexible power plants to service the Reserve Power generation market.
Johannesburg
30 January 2019
Corporate and Designated Adviser
River Group