Proactive Investors - Run By Investors For Investors

Kibo Energy acquires 100% interest in Bordersley reserve power generation project

Kibo previously held a 60% interest in the project through its MAST Energy subsidiary, but it has agreed to issue shares to the other MAST shareholders in return for a 100% interest
handshake
MED remains responsible for managing the development of Bordersley

Kibo Energy PLC (LON:KIBO) has moved to take a direct 100% interest in the Bordersley reserve power generation project acquired by its MAST Energy Developments subsidiary last week.

The AIM-quoted company already owned a 60% interest in the project through its 60% stake in MAST, which acquired the 5-megawatt gas-fuelled plant for £175,000 last week.

READ: Kibo’s MAST Energy subsidiary finalises 5-year PPA at Bordersley power project

Kibo is now paying up to £2.4mln in shares to acquire the remaining 40% interest.

“We are delighted to take a direct 100% interest in Bordersley, having significantly de-risked this shovel-ready site and met all our working capital requirements for the next 18 to 24 months,” said Kibo chief executive Louis Coetzee.

“With the right partners also in place, including EPC contractor, owners engineer and a power purchase agreement with Statkraft, we anticipate commencing commercial commissioning at the end of Q1 2020; 100% of revenues generated from Bordersley will now flow to the Kibo bottom line and make a marked contribution to the group's ongoing funding requirements.”

Shares issued at a high premium

In return for the additional stake, Kibo will issue 46.1mln shares to MAST’s other shareholders at a price of 5.25p apiece – five times Tuesday’s closing price.

The shares will be issued in five separate tranches, with each tranche subject to various construction milestones.

As the sole interested party in Bordersley, Kibo will receive all of the revenue generated from Bordersley, which is due to be commissioned in the first quarter of 2020.

The company expects revenues from the project to “contribute significantly” to Kibo’s ongoing funding requirements.

Kibo shares surged 28.3% to 1.35p shortly after the news broke.

View full KIBO profile View Profile

Kibo Energy PLC Timeline

Related Articles

Sandstone project map
January 25 2019
Alto is chaired by its largest shareholder, businessman and minerals chemist Terry Wheeler.
A flow sheet aims to recover more than 90% of battery materials at a pilot plant
February 20 2019
A battery-recycling pilot plant at Lakefield in Canada advances its lithium efforts.
Mining operations
January 22 2019
Pantoro ended the December 2018 quarter with $20.8 million in cash and gold. The company remains debt free.

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use