Kibo Energy PLC’s (LON:KIBO) shares surged on Tuesday after it said its 60%-owned UK subsidiary, MAST Energy has entered into an agreement to acquire a 5 megawatt gas-fuelled power plant.
The AIM-listed firm said the sale and purchase agreement with Bordersley Power Limited would also include an option to lease the land for a project site as well as offers to connect to the electrical and gas grids.
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One the deal is completed, MAST will pay £175,000 for the plant, as well as £2,000 in costs relating to the gas connection.
Subject to a successful closure of the deal, Kibo said MAST would target commercial commissioning of the project toward the end of 2019 or early 2020.
“This initial strategic acquisition made by MAST Energy Developments is a key milestone as they advance on their strategy to become a key player in the UK flexible power generation market”, said Louis Coetzee, Kibo’s chief executive.
In late morning trading, Kibo shares were up 15.4%.