Bordersley Preliminary Notice to Proceed

RNS Number : 6245L

Kibo Energy PLC

09 September 2019

 

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: 09 September 2019

Kibo Energy PLC ('Kibo' or the 'Company')

Bordersley Preliminary Notice to Proceed

Kibo Energy PLC ('Kibo' or 'the Company'), the multi-asset, Africa focused, energy company, is pleased to announce that a preliminary notice to proceed with the construction and commissioning of the 5MW gas-fuelled power generation plant at Bordersley Power Ltd ('Bordersley'), has been issued by the Company's 60% owned subsidiary, and manager and operator of Bordersley, MAST Energy Developments Limited ('MED').

The issuance of the preliminary notice demonstrates the significant progress being made towards de-risking the development of Bordesley.  The plant is targeted for commercial commissioning end of Q1 2020 and is the first reserve power generation project being developed by MED, which is focused on building its initial portfolio of 100MW.

This event also triggers the payment of the next tranche of shares to the original MED vendors, St' Anderton on Vaal Limited ('St' Anderton'), pursuant to the agreement for Kibo to consolidate full ownership of Bordersley by acquiring all of St' Anderton's direct and indirect interests in Bordersley (please refer to announcement dated 26 June 2019).  St' Anderton will be issued 6,000,000 ordinary shares in the share capital of Kibo at a deemed issue price of GBP0.0525 per share ('First Tranche Shares').  

Louis Coetzee, CEO of Kibo Energy, commented, "Receipt of the preliminary notice to proceed provides a positive step in the development of the Bordersley power plant and the advancement of our UK power market exposure as we continue to advance our strategy of becoming a global energy developer with multiple power projects.  The opportunity to access revenue streams in the short term through an effective utilisation of the UK Reserve Power business model was the basis for the decision to acquire a strategic position in MED, and we have been consistently impressed by the significant progress achieved by MED in a relatively short time frame. 

"We believe MED to be highly complementary to our portfolio of coal-to-power projects in Africa which includes the Mabesekwa Coal Independent Power Project in Botswana and the Benga Power Plant Project in Mozambique.  We see a distinct opportunity in our business model and through our network of international advisors, and we remain focused on navigating the intricate agreements needed to bring our projects into commercialisation.  I look forward to updating shareholders in the upcoming weeks."

Total Voting Rights

Application will be made for the First Tranche Shares to be admitted to trading on AIM and the JSE AltX markets. Trading in the First Tranche Shares is expected to commence on AIM and the JSE on or around 16 September 2019 ('Admission'). Following Admission, the Company will have 805,053,798 shares in issue. The foregoing figure may be used by shareholders as the denominator for the calculations to determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA's Disclosure Guidance and Transparency Rules.

**ENDS**

This announcement contains inside information as stipulated under the Market Abuse Regulations (EU) no. 596/2014.

For further information please visit www.kibo.energy or contact:

Louis Coetzee	[e-mail]	Kibo Energy PLC	Chief Executive Officer
Andreas Lianos	[phone]	River Group	Corporate and Designated Adviser on JSE
Jason Robertson	[phone]	First Equity Limited	Joint Broker
Andrew Thomson	[phone]	RFC Ambrian Limited	NOMAD on AIM
Isabel de Salis / Gaby Jenner	[phone]	St Brides Partners Ltd	Investor and Media Relations Adviser

Notes

Kibo Energy PLC is a multi-asset, Africa focused, 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 UK Reserve Power generation market. 

Johannesburg

09 September 2019

Corporate and Designated Adviser

River Group

 

END

 

 

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