Shares in Kibo Mining PLC (LON:KIBO) went higher as it brought in a Barclays banking group to advise it towards financial close for its Mbeya Coal to Power Project in Tanzania.
Absa Bank Limited (Absa) will replace Standard Bank for this important development phase and will take an equity stake in the project when completed, instead of a standard retainer fee.
Absa/ Barclays will, among other things, be required to develop the optimum funding structure for the project and assist Kibo in negotating and finalising all agreements.
That will include the power purchase agreement, EPC-agreement and grid connection deal.
Kibo has negotiated with Absa a minimal cash retainer fee in exchange for giving them equity call options of 3.5% of the total share capital of the project company - the Mbeya Development Company Ltd.
Chief executive of Kibo Louis Coetzee told investors: "We are glad to report that the transition to ABSA will be seamless and will not result in any delay or additional budget cost towards completion of the Integrated Bankable Feasibility Study for the project.
"We are looking forward to benefitting from ABSA / Barclays' impressive record in bringing projects similar to the MCPP to successful financial close."
Last week, the firm pulled in one of the biggest names in world engineering to help construct the thermal power plant at Mbeya.
US giant General Electric signed a memorandum of understanding to supply equipment, technology and its help to bring the project to a financial close.
Talks are now underway to make the MOU into a binding agreement.
Shares added 4.17% to 9.38p.