Kibo Mining plc, the multi-asset Africa-focused energy and resource company, said it has completed the acquisition of an 85% interest in the Mabesekwa Coal Independent Power Project.
The project, which is located in Botswana, complements Kibo’s Mbeya Coal to Power Project in Tanzania and is in line with the Company’s broader strategy to position itself as a strategic regional energy company focused on tackling the acute power shortage, particularly in Southern Africa. As part of the terms of the Acquisition, Mr. Mashale Phumaphi has joined the Company as a Non-Executive Director.
An all share deal with Sechaba Natural Resources Limited has been completed, which sees Kibo acquire an 85% interest in a strategic integrated power project in Botswana. The project is highly synergistic with flagship MCPP in Tanzania, providing considerable benefits: economies of scale in equipment, execution, project finance and strategic partnerships.
Kibo said there is robust market dynamics given large energy deficit in Botswana and this is an advanced project – Scoping Study highlights 30-year Life of Mine with a maximum capacity of 600MW (4x150MW) based on a coal delivery rate of 3.2Mtpa.
Kibo said there is strong backing by institutional investors through Shumba Energy Limited’s (“Shumba”) investor base; Significant additional benefits to the agreement include Kibo’s first right of refusal to participate in any energy projects that Shumba may pursue over the next six-years; and consistent with Kibo’s business model and provides further endorsement of the Company’s ability to develop nationally important energy projects on a regional scale.
Kibo also announced the appointment of Mashale Phumaphi as Non-Executive Director.