Kibo Energy PLC (LSE:KIBO, JSE:KBO) is advancing its funding efforts as it works to complete the acquisition of a 54.54% interest in Billingham waste gasification and power plant being developed by EQTEC PLC (AIM:EQT).
In a stock market statement, Kibo said it received a number of formal term sheets for the funding, to exceed the £3mln needed for the envisaged transaction.
Kibo said it would now proceed with customary due diligence and approval procedures and it expects formal funding agreements will be completed in line with the transaction.
"The company is very pleased with the strong interest in and rapid progress made thus far in securing funding for the transaction," Kibo chief executive Louis Coetzee said in a statement.
Earlier this month, EQTEC agreed the deal with Kibo which sees the latter become a strategic investor in the proposed Billingham plant in Teesside.
Kibo will acquire a 54.54% equity stake in the Haverton Hill project special purpose vehicle (SPV), with EQTEC to retain 45.46% equity in the SPV and continue to lead the development of the project.
The gasification solutions company said Kibo's investment and participation is “intended to accelerate development progress, support pursuit of a wider range of commercial opportunities and de-risk the subsequent construction and commissioning phase”.
EQTEC said the two companies have a shared outlook on how energy infrastructure projects should be developed and project managed successfully.