https://www.miningweekly.com

Kibo advances strategy with Botswana IPP project stake acquisition

30th November 2017

By: Anine Kilian

Contributing Editor Online

     

Font size: - +

JOHANNESBURG (miningweekly.com) – In line with its strategy of building a diversified portfolio of energy production assets, Aim-listed Kibo Mining will acquire an 85% stake in a company that will hold the Mabesekwa coal independent power producer (MCIPP) project for about £9-million in shares.

Kibo has entered into an agreement with Sechaba Natural Resources, a subsidiary of Shumba Energy, to acquire the stake in a new company to be established by Sechaba (NewCo), which will hold the MCIPP.

The project will comprise a 300-million-tonne subset of the current 777-million-tonne in situ coal mineral resource defined by Shumba at Mabesekwa.

Kibo, which also owns the Mbeya coal-to-power project (MCPP), in Tanzania, plans to build on the work completed to date at Mabesekwa.

"This is a fantastic opportunity for Kibo as we focus on building an energy business with producing assets in multiple geographies. Given this is the first step in pursuing our expanded strategy, we are pleased that the project is ideally located in Botswana, which has one of the best credit ratings in sub-Saharan Africa and a business-friendly environment,” CEO Louis Coetzee said in a statement on Thursday.

Should the transaction complete, Sechaba will own 153.71-million Kibo shares – about 28% of Kibo’s enlarged share capital.

“We are delighted to have concluded such a value-accretive agreement for our shareholders. The transaction shall see us procure London-listed shares in an exciting emerging energy developer to the value of 40% of Shumba’s current market capitalization.

“In addition, we are confident that the partnership with Kibo will see us fast-track the development of a coal mine at Mabesekwa,” added Shumba MD Mashale Phumaphi.

As part of the transaction, Kibo will have first right of refusal over any energy projects that Shumba may pursue over the next six years after completion. 

Additionally, Shumba will be granted first right of refusal on any coal export projects that Kibo may pursue over the same timeframe.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

The functionality you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION