25th Jun 2020 12:58
(Alliance News) - Kibo Energy PLC said Thursday it has agreed a GBP1.0 million investment from a consortium consisting of several high net worth entities and individuals, including two of the company's largest shareholders.
The term sheet, Kibo said, will allow the firm to continue development of its "diverse" energy project portfolio comprising 1255 megawatts generation capacity approaching commercialisation.
The investors have the option to convert part or all of the facility provided to the company, Kibo said, with a floor price of 0.15 pence.
Shares in Kibo Energy were trading 18% lower in London on Thursday afternoon at 0.23 pence each. In Johannesburg, the shares were 8.3% lower at ZAR0.11 each.
Chief Executive Louis Coetzee said: "Following the recent extraordinary general meeting, some of the of the major shareholders in Kibo entered into discussions with the company regarding the projects that Kibo have within its portfolio and the costs associated with the further development of these. These discussions delivered strong support for the Kibo project portfolio and development strategy."
The deal will be over four tranches, consisting of two GBP300,000 and two GBP200,000 tranches each.
Kibo said its primary focus is on Benga project in Mozambique, where it hopes to deliver 350 MW to 400 MW.
"This compelling endorsement from a consortium of highly experienced investors-existing long-term shareholders, will enable the continued development of our projects, which are all approaching commercialisation," Coetzee continued.
He added: "In particular, our project in Mozambique is making vast strides forward, where we realistically expect the delivery of two PPAs before the end of 2020 for up to 400 MW; at the start of this year our expectation was for one PPA for 150 MW. There is a lot of work still to be done, but our team is focused on delivering on it and we look forward to providing further updates in due course."
By Paul McGowan; [email protected]
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