Aim- and JSE-listed Kibo Energy on Monday announced that the due date by which potential equity investor Sepco III had to complete its internal investment process had been extended to November 30.
This had initially been expected to be completed by September 30.
Kibo had signed a strategic development agreement (SDA) with China-based Sepco III in July, whereby Sepco III stated its intent to make one or more equity investments in Kibo towards the development of its energy projects.
Mining Weekly Online previously reported that Sepco III had committed to acquiring an initial direct equity investment of between 10% and 15% of Kibo's issued share capital for a cash price to be agreed between the two parties.
Additionally, Sepco III had the option, at its sole discretion and within 18 months from completion of the first direct equity investment, to make a second direct equity investment in Kibo of a further 5% to 10% of Kibo's issued share capital.
As part of the SDA, Sepco III has, subject to completing the first equity investment, the right to become the sole bidder for the engineering, procurement and construction contract in respect of all Kibo's existing and future energy projects.
Kibo is developing the Mbeya coal-to-power project, in Tanzania; the Mabesekwa coal independent power project, in Botswana; and has entered into a joint venture agreement with Mozambique energy company Termoeléctrica de Benga regarding the development of the Benga independent power project, in Tete, Mozambique.